ETMarkets Smart Talk: Fiscal deficit above 6% could result in a kneejerk reaction on markets but devil lies in the detail: Sachin Shah

economictimes.indiatimes.com:

Sachin Shah, Executive Director & Fund Manager, Emkay Investment Managers Limited.

In an interview with ETMarkets, Shah said: “But as I said, the more important thing is the devil is in the details. How are you going to manage your fiscal deficit? Is it at the cost of capital expenditure?,” Edited excerpts:

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If you look at the D-Street, it is already in a party mode with Sensex and Nifty sort of touching fresh record highs in the run-up to the main event. However, probably in a week or so, we have seen mild consolidation, but that is about it. So, what is D-Street pencilling in?
Actually, for the last almost six-seven months, the markets have been very-very buoyant, and they have continued, of course, in the last three-four months also.

If you see the first quarter of the financial year 24-25, I think most of the portfolios are up in the range of 15% to 20%.

Although, we saw some knee-jerk reaction, post-election results, but I think that was short-lived for less than 24 hours.

And markets have taken into stride that there is political stability, there is political continuity and I think the other very important aspect is that today the confidence in the earnings growth is fairly high.

Like today, when we look at our own portfolios, we believe that at a portfolio level,