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The government has hit 5 sixes in a row with this Budget: Shankar Sharma
The markets gave a thumbs up to the budget. In an interview with Business Standard, Vice-Chairman and Joint Managing Director at First Global, Shankar Sharma, shared his views on this year's budget
2 min read Last Updated : Feb 02 2022 | 8:00 AM IST
Q1: Has the government batted on the front foot and hit a six as regards the Budget proposals or are they still playing a test match? Ans:
The government his hit 5 sixes in a row with this Budget
Good work of the last few years continues
Global and domestic macros challenging, but the Budget has delivered
Q2: What is the one defining characteristic, according to you, that makes this Budget stand out compared to the ones presented over the last few years? Ans:
India as a tech powerhouse instead of service economy
Q3: Start-ups also found a mention in the budget. Do you see more companies with vague revenue outlook approach primary markets at obnoxious valuation over the next few months? Ans:
New listings: Some damage already done to the Indian startup ecosystem
Buyer’s beware - Investors need to be careful
New-age listings to take a backseat
Q4: As regards taxes, long-term capital gains for all assets have been capped at 15 per cent. RBI also plans to introduce a digital rupee. Budget also proposed taxing digital assets/ cryptos. How are you reading into this? Will it trigger a shift from digital assets to equities? Ans:
Equity market will continue to get domestic retail inflows
Too early to assume a shift from cryptos into equities/ bonds
Tax on cryptos is par for the course
Q5: How will you, as a fund manager, approach the equity markets in the backdrop of the budget proposals? Ans:
>Not buying large-caps: Banks, FMCG, oil and gas etc
>IT sector still holds promise
>India remains a great small-cap market, but choose wisely
 "The government has hit 5 sixes in a row with this Budget: Shankar Sharma")
