large cap investments: Putting money in the right hands to spur consumption: S Naren
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The backdrop to the budget and the market was such that consumption was weak, especially among certain middle-class segments. Over the past three years, due to a strong macroeconomic environment post-Covid, infrastructure and related sectors had done well. However, this year, what the economy needed was a renewed focus on consumption-oriented areas. While many were talking about the need for interest rate cuts, the real issue at this point was the slowdown in consumption. The government has put money in the hands of people at the lower end of the income spectrum through tax reductions. This was the need of the hour and, in that context, it was the right budget for this stage of the economic cycle. Infrastructure-oriented segments have been performing well, and the overall macroeconomic environment has remained positive. We anticipate some slippage from the 4.4 % fiscal deficit target announced by the government. However, given the signifi...