'Budget may boost funds for railway, power, renewables'

Being a vote on account budget, major policy announcements are unlikely but Vikas Gupta, small case manager and OmniScience Capital CEO, expects an increased allocation in railways, power and renewables.

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"Besides roads, airports, ports, and waterways should also be in the spotlight," he added. Despite the stellar rally in defence, railway and power stocks, Gupta believes defence is approaching fair value and some stocks in the sector are slightly overvalued. At the same time, railways, though not fully valued yet, is nearing fair value whereas the power sector remains an open opportunity. That said, Gupta has taken a contrarian bet on the tech sector, both in US and India. Edited excerpts:

With the budget and general elections nearing, are there any dominant themes this year? Some market participants are contemplating a pause due to these major events. What are your thoughts?

We are far from a bubble. The economic cycle is just beginning, with government investments, and now, private sector investments are driving the cycle. Private sector commitment is anticipated to last three to five years, with the current economic cycle likely in its second year at most with the peak expected around the fourth or fifth year.

We anticipate a significant upswing in investments. The government follows a marathon-like policy, focusing on extensive infrastructure development with a focus on logistics, especially railways, roads, waterways, and airways, and smart multi-modal hubs.

Are there specific developments or announcements you are anticipating in the upcoming budget?