In chat with Anil Singhvi, Valentis Advisors MD Jyotivardhan Jaipuria reveals expectations from Budget, market outlook

Budget 2021 Markets Want More: In chat with Zee Business Managing Editor Anil Singhvi, Founder and Managing Director (MD) of Valentis Advisors Pvt Ltd Jyotivardhan Jaipuria said that the onslaught of pandemic has increased the fiscal deficit and may go upwards of 7 per cent. The Government could forecast it at 6 per cent for the next financial year, he said while revealing his Budget expectations.  

Jaipuria was optimistic about the Gross Domestic Product Growth (GDP) for the FY 22 estimating it around 11 per cent.

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He said that the government could raise its revenue from the disinvestments, it plans to undertake over the next financial year. This can be used to fund its infrastructure push, he further said. 

Jyotivardhan Jaipuria on Stock Market Outlook 

He said that he expected the GDP to remain at 11 per cent in FY22 which he said was very good. The companies would see earnings growth at 30 per cent because of the low bas throughout the pandemic. The earnings upgrade has not happened over the last 6 years. 

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मार्केट मांगे MORE में वैलेंटिस एडवाइजर्स के फाउंडर & MD ज्योतिवर्धन जयपुरिया ने कहा- कोरोना वैक्सीन से मिलेगी बाजार को संजीवनी#BudgetOnZee @AnilSinghvi_ pic.twitter.com/kd0yFKEsUj

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There is now a focus on not just the earnings upgrade but also earnings growth.  

He also said that the current valuations are not cheap and the PE ratio for markets is around 22. Over the last five years, the returns have come on the back of valuation rerating.  

The markets will now rely more on the earnings and less on the valuations, he warned. Though the returns will be there in this year, the market is likely to be choppy, he added. 

Among sectors, he said auto ancillary stock and cement stock will do well. 

There is also an expectation in the markets that the coronavirus vaccination will cover most of the people. This will be a sentiment booster for the markets. The coming of new vaccines also augurs well.