Budget 2021 Markets Want More: In chat with Anil Singhvi, expert Anand Tandon reveals expectations

Stock Market Outlook With Anil Singhvi – The stock markets should be looked at from two viewpoints - one is the from the levels point and the other is from earnings of the companies point, market expert Anand Tandon said in a chat with Zee Business Managing Editor Anil Singhvi. He said that the earnings growth in FY22 is expected to be strong. Notably, it is after many years that the earnings growth is expected to be in excess of 20 per cent, Tandon remarked.

This is because in the Q1 FY21, companies suffered because of the lockdown so there will be a low base to grow on and also because of inflation as prices of all commodities have been on the rise.

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On the stock market situation, Tandon said that most of the uptrend that was to be seen in the markets has already come. Though there could be a double-digit growth over the next 12 months, he said.

The commentary on the markets would change if there is an change in the liquidity situation. As of now, there is high liquidity because of the money put in by Central Banks all across the globe.

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'मार्केट मांगे MORE'

बाजार में इस साल भी 10% से ज्यादा रिटर्न मिलने की उम्मीद। बजट में इंफ्रास्ट्रक्चर सेक्टर पर होगा...आय बढ़ाने के लिए टैक्स ढांचे में बदलाव कर सकती है सरकार: आनंद टंडन, मार्केट एक्सपर्ट#BudgetOnZee @AnilSinghvi_ @aptandon pic.twitter.com/bVEyFOffdx

— Zee Business (@ZeeBusiness) January 19, 2021

He said that major growth in earnings is coming from commodity-based companies as the prices of the commodities have been on the rise. Metals and sectors like cotton have see huge surge in prices, he said. So the margins have expanded. In companies like Hindalco or Tata Steel, the prices of end user products have increased while the raw material prices are expected to increase later.

The NPA levels in banks are coming down as compared to the expectations.

On investment opportunities

The inflation linked theme has increased. He said that he expected inflation to come back this year not just in India but worldover. He said that the investors should focus on commodities including oil and gas. The commodity prices are expected to rise further because of China backlash factor too.

Budget 2021 Expectations - On Budget 2021, he said that he expects a lot of focus on the infrastructure in the budget. The government can bring changes to tax slabs to increase income. It will be good of there is not much changes in the interest rates.