Amit Rathi’s expectations from Union Budget 2016
Amit Rathi expectations from Union Budget 2016 just like a credible action plan’s need on recapitalization in banking and expenditure in the infrastructure sector. With budgetary season raising the bar of expectations for the common man and numerous industrialists, we have a detailed analysis of the market needs and expectations from the Union Budget 2016.
The Managing Director of Anand Rathi Financial Services (ARCL), he thinks that this budget should go beyond the quality of initiatives, in order to encourage the private investments and infrastructure. Amit Rathi also looks forward and sees a credible action plan on recapitalization of the banking sector.
In a recent interview with a concerned media authority, Mr. Rathi was asked to choose one sector out of real estate, metals and PSU banking space, on which he picked PSU banking space by justifying his reason, “The non-performing assets (NPAs) problem there is a lot of uncertainty there. If you go back and see what happened to the US, once the asset quality review takes place lot of the uncertainty is behind us. Then you will start seeing bank specific stocks starting to probably do well.”
On asking why real estate and metals are not on his priority list at the moment, non-executive director of Anand Rathi Commodities said, “Real Estate, our personal house view is that we are looking one of the longest bear markets in few generations coming through in real estate, supply, affordability etc. and metals, again we are looking at a sort of a bear markets situation. You could see trading pullbacks but that is a trading call and something which is very difficult for us to call.”
According to finds public sector banking stocks attractive from a long-term perspective even after being battered at the moment.