Synopsis “FII exodus has come out of the relative valuation of India versus the world and this Budget was not something that could have completely changed sentiment because the government has to do fiscal consolidation. They have to stimulate growth and they have done both. This is the reason why the immediate reaction has been positive but the Budget cannot change market valuations. ” ETMarkets. com Related Budget 2023: What sectors are likely to lead the market post Budget? Prashant Jain answers Budget 2023: Want to add positions, banks are the best bet, says Sunil Singhania Budget 2023 should be good for auto sales, says Maruti Suzuki’s Shashank Srivastava “The Budget has been well thought of as it has been over the last three years which is the reason we have not had an inflation problem or forex crisis or anything like that because the government has handled the macro very well including the Budget,” says S Naren , ED & CIO, ICICI Prudential AMC , talking to ET Now post the announcement of Budget 2023. ET Now: How do you rate the Budget? I do not think the markets could have asked for anything better? S Naren: Absolutely. I think over the last many years, the macro has been handled very well and there were no other expectations from the Budget. We were very clear that there was not any scope for the government to do much except to bring down the fiscal deficit by 0. 5% and give fillip to growth. That is what the budget has done at this point of time. Budget 2023 India unveils income tax bonanza a year before . . . Union Budget 2023: What gets cheaper, what gets. . . Tax slabs rejigged; rebate limit raised in new . . . Union Budget 2023-24: Big announcements Cigarettes to cost more as Budget proposes 16% . . . Budget 2023-24: Where is the govt spending more. . . Budget 2023: Government reduces customs duty on. . . MSME sector lauds revamped credit guarantee sch. . . Conversion of physical gold to e-gold receipt a. . . Major boost to rural economy through enhanced f. . . Sports ministry gets 700 cr-plus boost in Union. . . What’s in the Budget for MSMEs? Here’s a quick . . . 1 2 3 4 5 6 7 8 9 10 11 12 The real problem has always been that India has been a costly market. Over the last three to four months, India has been underperforming the world and if that continues for a few more months, maybe the market over-valuation problem will get over and that is the only challenge and it has not been the Budget. MORE STORIES FOR YOU ✕ Budget 2023: What sectors are likely to lead the market post Budget? Prashant Jain answers Budget 2023: Want to add positions, banks are the best bet, says Sunil Singhania Budget 2023 should be good for auto sales, says Maruti Suzuki’s Shashank Srivastava « Back to recommendation stories I don't want to see these stories because They are not relevant to me They disrupt the reading flow Others SUBMIT The Budget has been well thought of as it has been over the last three years which is the reason we have not had an inflation problem or forex crisis or anything like that because the government has handled the macro very well including the Budget. ET Now: Your style has always been that of a contra investor. I am wondering what are the contra opportunities that you are finding in the current market given what the Budget has announced in terms of a thrust on capex, railways, and even defence? S Naren: Basically, the last few days gave us the opportunity to look at banks but then today the banks have been in a completely different camp and we do not think that the Budget is bad for pharma or something like that. We continue to think over the last four-five months. We have been telling people that it is a great asset class for some more time and therefore debt has continued to be a great contrarian asset class at least for some more time. It remains a contrarian asset class at this point of time and we continue to think that the market should be volatile for some more time till the time the relative valuation of India becomes more comfortable. Part of it has already happened over the last four months. If you look at the way India has underperformed the other parts of the world over the last four months has been significant and once that happens, India goes back to that structural good story and from that point of time, it will be good. But currently, debt represents a good contrarian opportunity. ET Now: You made a very pertinent point. Is that a relative valuation, the only reason why we have seen an FII exodus from the India equities of late? S Naren: Actually yes. When we talk to all the foreign brokers who service many of these customers, who look at India and other parts of the world, people are not selling India because India has a problem. They are selling India because the other markets are too cheap and the level of underperformance of those markets against India has been stupendous. They have not been selling India because of anything. They have been buying the other markets because the other markets have become cheap. It is important to recognise that it is not that there is a problem in India or something like that. That is not the reason and that is the reason why over a period of time, we have been telling people that India has to be systematically invested through SIPs because the problem is not in India. The problem has come out of the relative valuation of India versus the world and this Budget was not something that could have completely changed sentiment because the government has to do fiscal consolidation. They have to stimulate growth and that they have done. This is the reason why the immediate reaction has been positive but the Budget cannot change market valuations. Don’t miss out on ET Prime stories! Get your daily dose of business updates on WhatsApp. click here! Wednesday, 01 Feb, 2023 Experience Your Economic Times Newspaper, The Digital Way! Read Complete Print Edition » Front Page Pure Politics Companies Economy More Adani Enterprises FPO Fully Subscribed on Final Day The ₹20,000-crore follow-on public offering (FPO) of Adani Enterprises Ltd (AEL) was fully subscribed on the final day of the offer Tuesday, January 31, thanks to late demand from family offices, corporates, and foreign investors. How Gautam Adani Lost $75b Market Value but Pulled off $2. 5b Issue after Short Attack It was around 5. 30 in the morning last Wednesday when senior Adani officials got the breaking news, hours before the anchor book — the institutional pillar of any issuance — of the ₹20,000-crore ($2. 5 billion) follow-on offer (FPO) of Adani Enterprises Ltd was to open. Flipkart Esop Sale: Big PeDay for Nigam, Chari The cofounders of PhonePe, Sameer Nigam and Rahul Chari, are expected to receive individual cash payouts of $20-25 million by completely liquidating their stock options in erstwhile parent company Flipkart, according to people aware of the development. Read More News on budget India Budget 2023 News s naren Market Impact Budget 2023 Union Budget 2023 | Budget 2023 Fiscal Deficit expert view Stock Market et now market valuation | FIIs (What's moving Sensex and Nifty Track latest market news , stock tips and expert advice on ETMarkets . Also, ETMarkets. com is now on Telegram. 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