Dalal Street Voice: US Fed will be an important driving force for Indian markets post Budget 2022: Rahul Jain of Edelweiss Wealth Management

Rahul Jain, President & Head, Personal Wealth, Edelweiss Wealth Management said that the US Fed will act as a bigger driving force; it is not just limited to India, it is important for the world as well.

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In an interview with Zeebiz's Kshitij Anand, Jain said Digitalization and Capex (Defence, Roads, Ropeways) is the theme. The focus on Digitalization and spending all the incremental money available would change India. Edited excerpts:

Q) On a scale of 1-5 – how do you rate the overall Budget and why. (5 being the best)

A) I would rate it at 4.5. As we are focusing on boarder building blocks for the nation such as infrastructure, digitilization, finalization, and many more.

Q) Where do you see markets headed post Budget 2022? What will be a bigger driving force – US Fed or Budget allocations?

A) The markets will turn out to be positive. However, I think we will witness volatile markets with upward bias. The US Fed will act as a bigger driving force; it is not just limited to India -- it is important for the world as well.

Q) How do you see the government managing its fiscal math?

A) According to me, there is a lot of room for income increase. Government is conservative on that aspect and there could be an upside surprise. Basically, adding more capital for investment.

Q) Which sectors are likely to benefit the most from Budget 2022 and why?

A) The sectors which will likely benefit from Budget are Capital Expenditure - Roads, Defence and other sectors such as Real Estate and Banking.

Q) Any announcement you thought it stood out from the Budget speech or document?

A) Digitalization and Capex (Defence, Roads, Ropeways) is the theme. The focus on Digitalization and spending all the incremental money available would change India.

Q) How do you see the renewable space in the year 2022 post Budget announcements?

A) There are a lot of conversations around Electric Vehicles and government is serious about it. However, it will have some challenges in terms of creating infrastructure and it would take its own time.

Q) What is your take on December quarter earnings so far?

A) The numbers are very encouraging. Till now around 150 corporates have declared their results. So Excluding Bank, we have grown at 16% PAT and NIFTY numbers has outperformed by 6% vis-à-vis expectations, it’s a good number.

Q) FIIs have remained net sellers in the last 3 months at least in the cash segment and January is no different. What is the likely trend – in light of the hike in US Fed rates?

A) More than the Budget or domestic market, it is the function of the Fed’s behavior. And we believe that the market will be volatile and should stabilize in a few months.

(Disclaimer: The views/suggestions/advice expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)