Defence sector growth will be modest despite Budget boost: Manish Sonthalia
«If this means that government has to cut down on government expenditure and that does not augur well for the infrastructure companies. If we look at post the COVID, both the corporate sector and the government have been reducing their debt,» says Manish Sonthalia, Emkay Investment Managers.
We are perhaps ending the year on a bit of a sombre note because last couple of months have been all about correction. But do you see this correction protrude into 2025 or is it going to be a different picture?
Manish Sonthalia: So, everything hinges on what happens in the budget and we are looking at the budget exactly one month's time. And, of course, the problems are well known. It is the slowdown in consumption. It is the slowdown in spending. So, these things need to be addressed. Otherwise, corporate earnings do not look like having more than a 10% to 12% growth.
So, it is again going to be back ended in terms of how the growth picture looks like because FY25 is a given is a soft year in terms of both the market performance. You have a 10% appreciation in calendar 24.
And we are looking at 10% to 12% earnings growth in calendar 25 as well. So, from that point of view, if something needs to be done, it has to come at the behest of the government. Otherwise, markets are not going anywhere. Markets will meander in a small range between 22,000 and 25,000 as we speak. So, all eyes on the budget, I would say.
And if we were to look at narrowing it down to some sectors that would possibly benefit from that, do you think that
