The geopolitical risks on crude oil will continue to be high as the current situation in West Asia looks more serious than previous skirmishes, said Rahul Singh, CIO-Equities at Tata Mutual Fund.
“It will have to be seen in the light of what impact it has on earnings if crude stays at USD 75 per barrel for a longish period of time... Therefore, one cannot make a uniform or unilateral kind of judgement around the whole market per se,” Singh said in an interview with CNBC-TV18.
“Incrementally, what would matter for India as a market is how fast the economy recovers, how soon the earnings recover," he added.
When asked about the budget expectations, he said, “More than the budget, the broader direction of reforms and how to kick start the investment cycle is what takes precedence. I don’t think there is a lot of room for a significant cut in personal income tax etc.”
Talking about themes for 2020, Singh said, “This is a period to start looking at stocks and sectors which offer decent risk rewards and start building those in portfolio gradually and cautiously over a period of time and that’s what we are trying to do.”
Singh does not expect capex revival until the fiscal situation improves.