Budget 2023 Expectations: Government should continue to be a partner in development of capital markets, says Avendus co-CEO Vaibhav Sanghvi

Budget 2023 Expectations: The government must continue to be a partner in the development of capital markets in terms of taxation, Vaibhav Sanghvi, Co-Chief Executive Officer at Avendus told Zee Business Managing Editor Anil Singhvi in an exclusive interview. He was replying to a question about his expectations from Union Budget 2023.  

Sanghvi said that the markets want the government to remain committed to ironing out supply side issues and also maintain its focus on capital expenditure, like it has done till now. 

Avendus is a financial services company based in Mumbai. 

On the performance of Indian stock markets, he said that the domestic equity markets have outperformed its global peers from emerging and developed countries on a relative basis.  

However, the trend is taking a shift now as global markets become stable and China reopens. The allocation is now moving to China, he added. 

While passive inflows are coming to India, we are witnessing a reversal of inflows to China which was coming to India in 2022, the Co-CEO said. 

This trend is not likely to last long and our markets will begin to outperform when this happens, he said. 

He further said that there is likely to be some volatility in this quarter.  

He was bullish on both asset classes – debt and equity. He said that we are nearing terminal rate levels which will either plateau or even soften a bit towards the end of this year.  

He said that he expects India growth story to remain steady over the year with revenues and margins of companies remaining stable. Though, some downgrades could not be ruled out.  

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बैंकिंग, निजी बैंक, इंडस्ट्रियल और रुरल सेक्टर्स पर BULLISH: वैभव सांघवी, Co-CEO, एवेंडस अल्टरनेट स्ट्रैटेजीस

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He bets on banking sector to do the trick for investors in the equity markets. He said that banking stocks are available at attractive valuations. The current pressure on the sector is on account of FII selling, he maintained.  

He was also upbeat about the renewable segment.