Borrowing, capex, spending in rural areas will be keenly watched in the union budget, said Sandeep Bhatia, India Country Head at Macquarie Group, on Tuesday, adding that “L&T and banking sector will be watched closely”.

Macquarie, said Bhatia, would look at Tata Motors and Maruti if any concessions were given on electric vehicles (EVs).

However, will remain cautious on the new-age IPOs as valuations is a big question mark for newly-listed entities. He said, “We have our research reports out on some of them. So, we have been very cautious and I will continue to remain cautious. I think there is one very positive thing that we have seen is the widening of the market; we have seen new sectors come through. These are also sectors which have actually been spending in the last couple of years and that's definitely good for the broader economy. They have also been hiring which is also good for the broader economy. Valuations are a big question mark and we can clearly see that Fed rates are going to rise whether they rise by 50 bps every time or whether they rise by less than that is the only question now. So valuations across the board for this will definitely come under pressure.”

For all the latest updates on Union Budget 2022, follow our LIVE blog here

For the entire interview, watch the video

For full coverage of Union Budget 2022, click here

First Published:Feb 1, 2022 10:53 AM IST