What is your expectation from the upcoming Union Budget?
People are not too obsessed with the precise fiscal deficit percentage. People are ok with 10 basis points here and there. The biggest thing that would impact is long term capital gains tax. A comeback of the long term capital gains tax is not priced in by the market.
Valuations in Indian equity market are high. Do you see a correction?
Market is at above average valuations. A large part of the returns in the recent past have come because of re-rating and not earnings growth. So, future expectations on returns should be moderated. There will be bouts of volatility going ahead.The original article could be seen here.