HomeMarket NewsAmbit's Dhiraj Agarwal expects rural-focussed programmes and a consumption boost from Modi 3.0
Ambit's Dhiraj Agarwal expects rural-focussed programmes and a consumption boost from Modi 3.0
Banking and IT services are on Ambit's radar because of recent underperformance and comfortable valuations.
Dhiraj Agarwal of Ambit Investment Managers expects some tweaks to existing rural programmes and measures to boost consumption from the new government.
“I don’t think one can yet make a conclusive call that they (rural-focussed companies) have turned. However, cyclically, if the rural demand has been turned down for quite some time, there is time for a rebound,” he said.
The Modi Cabinet 3.0 already delivered its first decision, sanctioning financial support to facilitate the construction of 30 million houses across rural and urban India.
“The message which the government has given by maintaining a stable Cabinet compared to the last time for all the key portfolios is very clear that by and large the whole thrust on growth through capital expenditure and infrastructure development is going to continue,” he said.
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His focus at this point in time is on banks.
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Another large sector which has been underperforming is IT Services.
“This is one space where we need to watch very closely,” he said.
He likes the State Bank of India (SBI) from the public sector undertakings (PSU) space.
“A couple of leaders still look good from a longer-term point of view. From a shorter-term point of view, there could be a little bit of a rotation into private from PSU – that is highly possible,” he explained.
Also Read | Listed PSUs together post over ₹5 lakh crore profit in FY24
For more, watch the accompanying video
“I don’t think one can yet make a conclusive call that they (rural-focussed companies) have turned. However, cyclically, if the rural demand has been turned down for quite some time, there is time for a rebound,” he said.
The Modi Cabinet 3.0 already delivered its first decision, sanctioning financial support to facilitate the construction of 30 million houses across rural and urban India.
“The message which the government has given by maintaining a stable Cabinet compared to the last time for all the key portfolios is very clear that by and large the whole thrust on growth through capital expenditure and infrastructure development is going to continue,” he said.
Also Read | Morgan Stanley plans to bring AI tools to rich Australia clients
His focus at this point in time is on banks.
“Banks have been conspicuous by their underperformance for quite some time and valuations have come down, numbers are looking okay,” he explained.
Also Read | SBI approves plan to raise up to $3 billion via debt in FY2025
Another large sector which has been underperforming is IT Services.
“This is one space where we need to watch very closely,” he said.
He likes the State Bank of India (SBI) from the public sector undertakings (PSU) space.
“A couple of leaders still look good from a longer-term point of view. From a shorter-term point of view, there could be a little bit of a rotation into private from PSU – that is highly possible,” he explained.
Also Read | Listed PSUs together post over ₹5 lakh crore profit in FY24
For more, watch the accompanying video
(Edited by : Shweta Mungre)
First Published: Jun 12, 2024 2:30 PM IST
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