Era of easy money over; time for a more selective, stock-specific approach: Pankaj Tibrewal
«Our sense is that the recovery has started, government has started spending again, maybe not to the extent on the budgeted estimate, we will be still short of that, but we believe that the rest of FY25 we could see a sharp recovery coming on the capex side,» says Pankaj Tibrewal, IKIGAI Asset Manager.
You have been quite bearish in terms of what you have been indicating in terms of your post and in terms of your communication that markets in the month of November and December had run up. Now that markets have corrected, is it time to be more constructive?
Pankaj Tibrewal: So, if you look at it, three-four things have happened which were making us nervous for the last five-six months and we were cautioning all investors that the health of the economy is not in best of the shape. First, the liquidity, we spoke to dealer, distributors across for the last few months and the durable liquidity in the system is extremely tight and that is also reflected on the laf window if you look at the banking liquidity. Clearly, that incrementally with the governor change, our view is that that would be addressed and slowly and gradually if liquidity starts to ease out, that will be the first positive sign for all.
Second, we were concerned about the low capex spent by the government and do not forget for the last four years government has been the main proponent which helped the economy from three lakh crores to eleven-and-a-half lakh crores.
Till November that number is down by about 12% from a budgeted number which we saw in
