In Chat with Anil Singhvi, Motilal Oswal's Manish Sonthalia says growth-oriented Budget, structural reforms by government propelling market to new records

Zee Business Managing Editor Anil Singhvi spoke to Manish Sonthalia of Motilal Oswal AMC on Tuesday and asked for his reaction about Budget 2021 and its impact on Indian Stock market.  

See Zee Business Live TV Streaming Below:

Talking about what changed after the budget announcements that the stock market has witnessed unprecedented rally for the 7th straight trading session,  Sonthalia said there was nothing negative in the budget is the most positive thing. He said it is growth-oriented budget backed by strong spending by the government. 

Watch detail coverage in the video below:

बजट के बाद बाजार की बात...

यह Growth Orientation वाला बजट था जो सबसे पॉजिटिव है। ग्रोथ पर सरकार का फोकस और FIIs के निवेश से बाजार में जारी रहेगी तेजी: मनीष सोंथालिया, मोतीलाल ओसवाल AMC

देखिए पूरी चर्चा: https://t.co/PlzAbNUUz2#BudgetOnZee @AnilSinghvi_ @MotilalOswalAMC pic.twitter.com/sSAz9Bd1Ap

— Zee Business (@ZeeBusiness) February 9, 2021

"This will lead to job creation and health benefits, leading to multiplier effect, which further pushes growth.  This has been seen in the Budget 2021.  After very long time, a growth-oriented budget was presented and this is the most important reason behind this rally," Sonthalia said adding, besides it is also due to very strong flow of assets, which was seen even before the budget.  

Talking further, he said structural reforms taken by the government in the last four to 5 years have also started to pay dividends.  

Talking about help from the global market and strong FIIs buy, he said definitely these will help as the kind of growth that will be seen in India in FY 2022 will not be visible in Developed markets. India's future is bright in the longer run from FIIs point of view, he said.

"I am positively surprised with the good earnings posted by companies. This V-shaped recovery was never anticipated by anyone. The numbers are very strong against forecast for third quarter. There won't be much problem going forward, at least for the next six months," he said, while replying to the Market Guru's question about good show by the company and will continue in near future too.  

He said after Budget almost all sector will grow, but investors should be cautious in FMCG as it is trading at very high valuations.