Daily Voice | After the Budget, this investing adviser is optimistic about PSU equities and the tourist industry. Here's why

Daily Voice | After the Budget, this investing adviser is optimistic about PSU equities and the tourist industry. Here's why

The budget demonstrates the present government's confidence in not implementing populist policies in the year leading up to the elections, which is why Abhishek Banerjee gave it a score of 10 out of 10.

The CEO and founder of Lotusdew Wealth and Investment Counselors is Abhishek Banerjee.

In an interview with Moneycontrol, Abhishek Banerjee, smallcase manager and founder of Lotusdew Wealth & Investment Advisors, said, "I am bullish on PSU stocks." "I have high hopes for PSU stocks. Governments control policies and have monopolistic access to the markets, which helps PSUs succeed. When used in this manner, it may provide disproportionate gains.

Additionally, he anticipates greater growth in railway stocks due to the many structural benefits of railroads.

Following the budget, he is placing a strong emphasis on stocks of hotels and airlines. The Chartered Alternative Investment Analyst, with over ten years of experience in asset allocation and portfolio management, notes that the tourism industry is a good one for future governments and will continue to be a priority area due to the focus on employment opportunities, building India's brand, as well as entrepreneurship.

After the interim budget, are you optimistic about PSU stocks? Aside from this, what is the primary driver of the PSU Bank Index's increase when the market as a whole is weak?

Yes, I am. In Australia, for example, where public-private partnerships account for about 70 percent of employment, governments have monopolistic access to markets and influence over policies, which may disproportionately benefit well-run PSUs.

First, PSUs benefit from structural access to government capital expenditure programs, low prices, and a deep network. This implies that, when capital expenditures increase, a portion of the M1 and M2 money supply will pass via PSUs, providing them with low-cost deposits.

How satisfied are you with the budget? On a scale of 1 to 10, how would you rank it?

This budget, rather than focusing on the next year, talks about 50 years from now, when India will be a developed nation, and 300 years from now, when the GIFT City will be regarded as a global trade hub. This speaks highly of the current administration, as it shows that they are willing to make decisions that will affect the world long after they leave office.

I would have to give it a ten because this budget demonstrates the confidence of the current government in resisting populist measures in a year leading up to an election. This level of confidence in the policy is definitely encouraging for foreign direct investment (FII) flows, which are expected to supplement technical flows related to the change in MSCI weight and the inclusion of Indian government bonds in the JP Morgan bond index.

Noteworthy points include the following: each wagon has more than 70 seats, compared to the car's 5 seats; this easily means that the total value of seats, upholstery, electricals, etc. required is roughly approximately the size of a mini automobile market. The upgrading of 40,000 wagons is equivalent, in terms of sheer volume, to creating a whole auto spares market.

Are railroad stocks and capital expenditures increasing at the moment?

No, I believe there is still hope because we are just getting started. Railways have many structural advantages. Insurance companies benefit from fewer accidents, and EVs (electric vehicles) are less of a worry because public long-distance rail transportation will eventually replace other forms of transportation.

After the Budget, are you optimistic about hotel and airline stocks?

Yes, Job Opportunities, Brands of India: The tourism industry will continue to be a top priority for governments in the future due to its emphasis on manufacturing and entrepreneurship.

With the anticipated rate decreases, is it the ideal moment to invest in fixed income instruments?

I would say that equities are still our preferred asset class for the long term because it is difficult to expect a rate cut in an election year because it directly affects small savers, especially the senior citizen class, who make up a significant portion of the vote bank. However, I do not anticipate a rate cut, but inflation will eventually move towards the 4% target, perhaps not as much as it did before the elections.

After the RBI placed significant business limits on Paytm Payments Bank, what is your impression of the app?

"I don't think the lapses consisted part of their expansion strategy as well as it's unfortunate that the regulatory action was severe," he said. "This has been the challenge of the first mover in an emerging economy where they produced a business where rules were being made and possibly they could not implement the new rules fast enough."

Is there anything in the budget that is more upsetting than this?

It's possible that they altered the health and education exemptions to accommodate increased real expenses.

Do you believe that NBFCs will have more difficulty turning a profit than PSUs and private banks?

Absolutely, since there isn't much regulatory arbitrage left in NBFCs that gives PSU banks the upper hand over NBFCs. The question that still has to be answered is how soon NBFCs will take care of the regulatory interventions that aided in their early expansion.