Elevated credit spreads not good for growth: UTI AMC's Vetri Subramaniam

The entire pharmaceutical sector has witnessed a significant correction and this is visible in the valuations, says UTI AMC's Subramaniam

Vetri Subramaniam, group president & head (equity), UTI Asset Management Company, in an interview with Hamsini Karthik, says the borrowing plan announced in the Budget may strain resources. Edited excerpts:

What’s your key takeaway from the Interim Budget?

The size of the borrowing programme and growing reliance on extra budgetary resources is putting a strain on resources. Also, credit spreads remain elevated. This is not good for growth and raises a concern about “crowding out”.

How do you see 2019 pan out for investors, given where rupee trades at and the overhang of general elections?

These variables have a role