Budget 2021 marks a fundamental shift from the previous budgets with a focus on CAPEX and growth that should help revive job creation, said Prashant Jain, ED and CIO of HDFC AMC, on Tuesday.
Speaking with CNBC-TV18, Jain said, “The clear emphasis is on capex, accelerating growth and that in-turn should review jobs and consumption, but the shift in focus towards investment is very clear. Therefore, sectors that benefit from this are beneficiaries of this budget and that would include banks, which are coming out of a significant NPA cycle and the capital goods companies. These are two sectors which stand to benefit from this.”
SBI is the best bet among public sector banks, Jain said.
“SBI is the best-positioned in the public sector undertaking (PSU) banking space right now and it is one of the few public sector banks which has not lost market share in any product category.”
Talking about the market, he said, “Earnings revival is genuinely and truly underway. It is surprising that earnings revival has taken place during the COVID year. The risk in the market is always if you think from medium to long-term perspective, it is overvaluations.”
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