ETMarkets Smart Talk: Interim Budget 2024 could see tax relief measures to boost consumption & investment: Sonam Srivastava
“Key areas of focus could include tax relief measures to boost consumption and investment, especially for salaried individuals and MSMEs,” says Sonam Srivastava, smallcase Manager & Founder, Wright Research.
In an interview with ETMarkets, Srivastava said: “Increased allocation for infrastructure projects is anticipated, which would create jobs and stimulate economic growth,” Edited excerpts:
The market seems to have climbed all wall of worries to hit fresh highs in the first week of January 2024. But the voice is getting louder both domestic and global that these valuations are unsustainable. What is you take?
Sonam Srivastava: The market reaching new highs in early 2024 reflects a blend of optimism and speculative fervor. The concerns about unsustainable valuations, both domestically and globally, are not unfounded.
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Offering CollegeCourseWebsiteIndian School of BusinessISB Chief Digital OfficerVisitIndian School of BusinessISB Chief Technology OfficerVisitIIM LucknowIIML Chief Executive Officer ProgrammeVisitThese high valuations are buoyed by strong corporate earnings and positive market sentiment, but they also reflect the influx of liquidity and a tendency to chase growth irrespective of fundamentals.
With strong GDP growth in India and prospects of rate cuts being strong, the market is currently riding on a wave of optimism, but investors should be cautious.
High valuations among smallcap stocks, especially if not supported by corresponding earnings growth, could lead to corrections.
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