Latest news with #Budget
Economic Times
8 hours ago
- Business
- Economic Times
Sanjay Bembalkar warns against chasing story stocks
The market rally seen in the last 3-4 months has made seasoned fund managers increasingly selective about where they deploy capital. In an exclusive conversation, Sanjay Bembalkar, Head of Equity at Union AMC, shares his nuanced view on current market dynamics while issuing a pointed warning about certain sectors that have captured investor imagination but may be running ahead of their fundamental strength. ADVERTISEMENT In this chat, he lays out his preference for consumer discretionary, industrials and financials. Edited excerpts from a chat: Markets have seen a strong run in the last 3-4 months. Do you believe we are entering overvaluation territory, especially in mid and small caps? Indeed, markets have rallied in the past 3 months. However if one takes a broader view of the various market caps, midcaps and small caps have taken a breather for the last 12 months and undergone time correction. Secondly, Q4FY25 has been the 2nd consecutive quarter where mid-caps and small caps have delivered better than expectations in terms of fundamental performance. Finally, the overall valuations premium which these companies were getting have undergone correction though they have not become cheap. If we take stock of these changes, we believe midcaps and small cap companies may offer better growth than large cap companies at now corrected valuations which are making us positive on mid and small cap category from here on. Our current view is positive on large cap, mid cap and small cap categories. Amid strong macro data points and RBI bazooka, how do you see the market trajectory shaping up over the next couple of quarters? Projecting short term is always tricky. If we consider what has transpired since the Budget, tax benefits and reduction in interest rate trajectory should add a significant disposable corpus in the hands of the middle class. Whichever way this money gets spent, either it will end up in consumption or investments leading to better prospects for the economy. Government spending should be elevated considering its push for infra as well as now changed prospects for defence spending over FY26/27. Overall tariff uncertainty should subside over a period of time and should provide us clear direction on exports growth over time. As it has been well understood that India is one of the bright spots on the global economic and investment horizon, we believe, backed by fundamentals and favourable flows due to India's positioning, markets are poised for a next positive trigger to unlock value. ADVERTISEMENT How was the Q4 earnings season? Did corporate results align with market optimism? The Q4FY25 earning season was better than expectations. However, one should note that expectations were quite muted thanks to long drawn slowdown in consumption and limited pick up in capital expenditure spending. The market did not yet see true animal spirits on capex announcements. Considering uncertainty on geopolitics and tariff, markets may have to be patient and wait for 2-4 quarters before we see continuation of capex announcements gathering momentum to align with market optimism. Have you made any significant shifts in your fund positioning recently? What are you overweight or underweight on today? We have observed that once uncertainty subsides, market participants focus on earnings growth and quality of companies business. We believe if these companies are bought at a reasonable price, they have the potential to deliver superior returns to investors over time. Hence, currently we are focusing on companies with domestic businesses and clear growth prospects. In our view, such companies are available in financials, consumer discretionary, industrial and defence space. Many of these companies might be of strategic importance where we believe the government would be keen to protect these companies in unforeseen circumstances. Considering the spending: we are positive on consumer discretionary, industrials and financials. We are underweight on consumer staples, IT and energy. ADVERTISEMENT Are you holding higher cash levels as a tactical call or staying fully invested? We do not take cash calls in our open-ended schemes; we remain fully invested in funds due to our constructive view on the markets. The situation however remains dynamic due to current short-term uncertainty in geopolitics and tariffs. ADVERTISEMENT Are there any sectors you are cautious on, either due to stretched valuations or macro headwinds? We are quite cautious on narrative focused sectors which have delivered disproportionate returns and are not backed by robust fundamentals. Such sectors/themes are reminders for investors that equity is a risky asset class with non-linear return profile. There are pockets of these companies in sectors like industrials, exports space which have run ahead of fundamentals and may see time/price correction. How do you approach asset allocation in times like these? If you have Rs 10 lakh to invest, how would you divide it in between stocks, debt and gold/silver. Investors are offered 2 key asset classes by markets: 1) Efficiency assets class like fixed income, stocks which derive its worth from underlying cash flows and 2) Scarcity assets class like gold, silver, rare coins etc which derive its worth from demand and supply of these assets. Since these assets derive their value from various factors, they typically have negative correlation in their return performance. We believe investors may take benefit of this characteristic and construct a robust portfolio for long term investment goals. Our current preference is: 1) 20-25% allocation to bullion assets like gold and silver and balance can be allocated between debt and equity depending on risk appetite of the investor. If required, we recommend investors to take help of financial advisors who can guide them over a period of time. In the equity portion, we recommend entering markets over 3-6 months via systematic route due to volatility expected in the near term. ADVERTISEMENT
Time of India
10 hours ago
- Business
- Time of India
Sanjay Bembalkar warns against chasing story stocks
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel The market rally seen in the last 3-4 months has made seasoned fund managers increasingly selective about where they deploy capital. In an exclusive conversation, Sanjay Bembalkar , Head of Equity at Union AMC , shares his nuanced view on current market dynamics while issuing a pointed warning about certain sectors that have captured investor imagination but may be running ahead of their fundamental this chat, he lays out his preference for consumer discretionary , industrials and financials. Edited excerpts from a chat:Indeed, markets have rallied in the past 3 months. However if one takes a broader view of the various market caps, midcaps and small caps have taken a breather for the last 12 months and undergone time correction. Secondly, Q4FY25 has been the 2nd consecutive quarter where mid-caps and small caps have delivered better than expectations in terms of fundamental performance. Finally, the overall valuations premium which these companies were getting have undergone correction though they have not become cheap. If we take stock of these changes, we believe midcaps and small cap companies may offer better growth than large cap companies at now corrected valuations which are making us positive on mid and small cap category from here on. Our current view is positive on large cap, mid cap and small cap short term is always tricky. If we consider what has transpired since the Budget, tax benefits and reduction in interest rate trajectory should add a significant disposable corpus in the hands of the middle class. Whichever way this money gets spent, either it will end up in consumption or investments leading to better prospects for the economy. Government spending should be elevated considering its push for infra as well as now changed prospects for defence spending over FY26/27. Overall tariff uncertainty should subside over a period of time and should provide us clear direction on exports growth over time. As it has been well understood that India is one of the bright spots on the global economic and investment horizon, we believe, backed by fundamentals and favourable flows due to India's positioning, markets are poised for a next positive trigger to unlock Q4FY25 earning season was better than expectations. However, one should note that expectations were quite muted thanks to long drawn slowdown in consumption and limited pick up in capital expenditure spending. The market did not yet see true animal spirits on capex announcements. Considering uncertainty on geopolitics and tariff, markets may have to be patient and wait for 2-4 quarters before we see continuation of capex announcements gathering momentum to align with market have observed that once uncertainty subsides, market participants focus on earnings growth and quality of companies business. We believe if these companies are bought at a reasonable price, they have the potential to deliver superior returns to investors over time. Hence, currently we are focusing on companies with domestic businesses and clear growth prospects. In our view, such companies are available in financials, consumer discretionary, industrial and defence space. Many of these companies might be of strategic importance where we believe the government would be keen to protect these companies in unforeseen circumstances. Considering the spending: we are positive on consumer discretionary, industrials and financials. We are underweight on consumer staples, IT and do not take cash calls in our open-ended schemes; we remain fully invested in funds due to our constructive view on the markets. The situation however remains dynamic due to current short-term uncertainty in geopolitics and are quite cautious on narrative focused sectors which have delivered disproportionate returns and are not backed by robust fundamentals. Such sectors/themes are reminders for investors that equity is a risky asset class with non-linear return profile. There are pockets of these companies in sectors like industrials, exports space which have run ahead of fundamentals and may see time/price are offered 2 key asset classes by markets: 1) Efficiency assets class like fixed income, stocks which derive its worth from underlying cash flows and 2) Scarcity assets class like gold, silver, rare coins etc which derive its worth from demand and supply of these assets. Since these assets derive their value from various factors, they typically have negative correlation in their return performance. We believe investors may take benefit of this characteristic and construct a robust portfolio for long term investment goals. Our current preference is: 1) 20-25% allocation to bullion assets like gold and silver and balance can be allocated between debt and equity depending on risk appetite of the investor. If required, we recommend investors to take help of financial advisors who can guide them over a period of time. In the equity portion, we recommend entering markets over 3-6 months via systematic route due to volatility expected in the near term.
Toronto Sun
17 hours ago
- Business
- Toronto Sun
Tories challenge Liberals on promised tax cuts
Despite promising average tax cut savings of $825 per year, the Parliamentary Budget Officer said the real figure is much lower Conservative MP Jasraj Hallan asks a question during question period in the House of Commons to Parliament Hill in Ottawa, on Thursday, June 19, 2025. Photo by Patrick Doyle / The Canadian Press OTTAWA – Daily hot chocolates are off the menu. This advertisement has not loaded yet, but your article continues below. THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. SUBSCRIBE TO UNLOCK MORE ARTICLES Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. REGISTER / SIGN IN TO UNLOCK MORE ARTICLES Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account. Share your thoughts and join the conversation in the comments. Enjoy additional articles per month. Get email updates from your favourite authors. THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK. Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account Share your thoughts and join the conversation in the comments Enjoy additional articles per month Get email updates from your favourite authors Don't have an account? Create Account Fresh from the Parliamentary Budget Officer's new report showing the government's promised middle-class tax cut falling far from what was promised, the last Question Period of the abbreviated spring sitting saw the Conservatives demanding answers. 'Just like Trudeau, he can't even get a tax cut right,' said Calgary East MP Jasraj Hallan, accusing Prime Minister Mark Carney of deceiving Canadians. 'He promised $800, yet the average Canadian will only save $90 this year – not even enough to get a hot chocolate from Tim Hortons weekly.' Despite Carney's election promise that his middle-class tax cuts would save families an average savings of $825 per year, P arliamentary Budget Officer Yves Giroux said that number's actually closer to $280, with most families expected to see savings of around $90 in 2025. This advertisement has not loaded yet, but your article continues below. Read More Two-income families with a child could see the biggest savings, but no more than $750. 'I recognize the job of prime minister comes with many responsibilities, I didn't know addition and division were one of them,' Carney said in response, pointing across the aisle to jeering Conservatives. 'The Parliamentary Budget Officer refers to the reductions for all Canadians,' he said. 'The vote that the members opposite supported this government on delivers tax cuts for the 22 million Canadians who pay taxes.' The PBO priced the Liberal tax cut at just under $64 billion over five years, while the Department of Finance Canada pegged the cost at $27 billion over the same time period. — With files from The Canadian Press bpassifiume@ X: @bryanpassifiume MMA NHL Canada Toronto & GTA NHL
South Wales Argus
a day ago
- Automotive
- South Wales Argus
How to get the lowest prices for a holiday hire car
The good news is that it seems car hire prices are getting closer to pre-pandemic levels, according to a new 12-country study by The research reveals that the average cost of a week's car hire in summer 2025 is £369, 43% lower than the 2022 high of £652, but still 19% more than in 2019 (£310). Prices have fallen steadily since the 2022 peak, by 43% compared to 2022 (£652), 29% compared to 2023 (£520) and 3% since last summer (£380). 'There are some good deals to be had this summer when hiring a car if drivers take the time to shop around for the best prices, and don't waste money on extras from the rental desk which could have been brought from home such as sat navs and child car seats," says Ben Wooltorton, from "It's also worth considering buying excess reimbursement insurance before you travel from a specialist insurance provider.' And, there's still chance to shave more off your costs, say the experts. 1. Book early but look for last minute deals Book early and shop around to get the hire car you want at a good price. For example, for a week's summer hire in Barcelona, Sixt quoted £288, while Budget quoted £129. 2. Look for free cancellation, so you can cancel if a better deal becomes available Last summer, savvy travellers could have saved over £100 on car hire by booking closer to their departure. Prices for a week's hire fell by an average of £116 between January and July 2024 – with potential savings of up to £266 in Milan. 3. Shop around for excess protection – you could save around £190 If a hire car is damaged or stolen, the hirer is responsible for the excess amount, which can be as high as £2,000. A week's standalone excess reimbursement policy from costs from £33.15 and includes damage, theft, and tyre and windscreen cover. This is a sixth of the cost compared to buying excess protection from rental companies which costs, on average, £167 for a week's theft and collision damage excess waiver and £57 for tyre and windscreen waiver - a total of £224 according to a European survey of car rental prices. 4. Avoid buying extras from the rental desk – and save around £230 Only two in five (41%) check the price of extras when booking their hire car. Expect to pay, on average, £73 for an extra driver, £85 for a sat nav and £71 for a child's car seat – a total of £229. Bring car seats from home, use a smartphone for maps and think carefully about the need of adding a second driver. 5. Take photographic evidence of existing damage Almost two in five (39%) hire car drivers found damage on a hire car that was not highlighted on the checkout sheet. To avoid unfair damage charges, check the vehicle thoroughly at pick-up and return, and take dated photos or video proof. 6. Don't hire from the main airport or railway station Compare the cost of hiring from the main transport hubs, i.e., the airport or railway station with the same company a short distance away, as the savings might be worth the taxi fare. 7. Use a credit card for booking and to cover the excess Use a credit card to gain Section 75 protection under the Consumer Credit Act. This means the credit card provider will protect purchases over £100 (and less than £30,000) and you could get your money back if there is a problem. 8. Read the small print to avoid unpleasant surprises Always read the agreement document thoroughly to make sure you are not agreeing to an upgrade or paying for the rental company's excess protection cover if you don't want it. Recommended reading: 9. Check the fuel policy Know the fuel policy before you drive away. If you need to return the car with a full tank, make sure you do, as the penalties can be expensive. Keep the receipt from the petrol company as evidence. 10. Mileage restrictions Similarly, if you are planning a driving holiday check for mileage restrictions to avoid getting caught out. 11. Know how to complain Go to the rental company within 14 days with the complaint. If a satisfactory outcome is not reached, complaints can be directed to the BVRLA in the UK whose members, including AVIS, Budget, Enterprise, Europcar, Hertz and Sixt, are expected to adhere to its mandatory Codes of Conduct. An alternative is to contact the European Car Rental Conciliation Service (ECRCS), which offers a free service to help with unresolved complaints, but the rental must be with a company that has signed up, i.e., Alamo, AVIS, Budget, Dollar, Enterprise, Europcar, Firefly, Hertz, Maggiore, National, Sixt and Thrifty.
West Australian
a day ago
- Business
- West Australian
Small business not convinced there's much in Budget for them but see bigger picture
There was little in the State Budget to excite small business owners with no change in payroll tax and no energy bill credit. Scott Jones has owned Diabolik book and record store in Mount Hawthorn for more than a decade. With this Budget Mr Jones said he was not holding out for much help. 'The only thing that they can possibly help me out with is just another way of offsetting power costs,' he said. 'But in many ways, I don't see what the State Government can actually do to help business, a retail business in Australia, especially under a Federal award.' He said he was not surprised when the Budget was released. 'I can't see anything that's going to change anything, it's not gonna make things any better for us,' he said. 'But then again, I didn't know what to expect to start with anyway, it's usually the federal budget that's more important for me.' While there was little in the Budget to help him, he saw investments to improve housing, health and infrastructure as potentially beneficial to him too. Mr Jones said he could see the benefit of broader cost of living relief on his business. 'Anything that can bring down the cost of living, even if it's just for home buyers or just increasing housing supply to make rent cheaper, any anything like that, in my opinion, is a good thing in for retail anyway,' he said. Mr Jones said he hadn't seen anything in thew Budget which would specifically help him. Over the years Mr Jones said it has become more difficult to run the business. 'It's certainly more difficult to turn a profit with increases in expenses well, just across the board,' he said. 'A lot of it is to do with freight costs and obviously with wage increases, which in my opinion, were well and truly overdue anyway.' Mr Jones said he had made changes to his own work roster to keep the store running. 'It just means that my wife and I basically are working more, we do longer hours,' he said. 'We're doing longer hours probably since COVID finished, it's just necessary if you want to be open like we are for seven days, you have to put in the hours.'
