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Raise your cash levels ahead of the Budget, says Ambit Capital's Dhiraj Agarwal

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Dhiraj Agarwal, Co-Head Equities at Ambit Capital, advised to raise cash across the board ahead of the Budget 2021.

Dhiraj Agarwal, Co-Head Equities at Ambit Capital, advised to raise cash across the board ahead of the Budget 2021. "Budget proposals and their impact has been a loose game now for at least 10 years. It is very difficult to predict the impact of what comes in the Budget. My take is very simple, going into the Budget, market is at a life high, valuations are at a life high, last two months has been parabolic and a big event is on the corner, simpler call at this point of time is to raise some cash across the board," he said.
He thinks it is time to be slightly cautious and selective. "This kind of parabolic moves never sustain, valuations are running high, sentiment is very bullish, bad news are largely getting ignored, good news and even whispers of good news gets priced in very fast, I would advise a little bit of caution here," he said.
In terms of banking sector, he said, "Banking space, in general, is looking good. There is a little bit of a positive surprise on the non-performing assets (NPAs) levels. On the banking sector, I would advise a little bit of caution. HDFC Bank’s valuations are not cheap anymore."
On the real estate, he said, "That seems to be an attractive space. Asian Paints – we have a sell rating on that company."
For full interview, watch the video.
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