The backdrop of the government action in the last 12 months was aimed at getting the economy on the growth track, said Rahul Chadha, Chief Investment Officer, Mirae Asset Global Investments. He continues to remain bullish on India as foreign investors continue to chase Indian equities. Going forward the market will look towards economic recovery. He foresees consumption stocks to take a breather while the next leg of the rally could be driven by the under owned PSU Banks and select corporate banks.
The RBI actions have been similar to the Federal Reserve, Chadha said, while adding that they continue to have an overweight stance on India while they have taken money off the table from consumer discretionary & staples and purchased corporate bank stocks.
Mirae Asset Global Investmentsis taking money off the expensive consumer discretionary and staple names which have done well and putting that money in corporate banks and industrials.
For the last two days, FIIs have been big buyers. Do you think Budget 2021 has really called the big rerating moment for India?
Yes, clearly it is a positive Budget. What the government has done over the last 12 months the PLI scheme, labour reforms and everything else was to get the economy on the growth path. We saw the active cases and daily deaths receding and the economy normalising and clearly FIIs were positive on India.