"Fils WILL MAKE A COMEBACK, MAYBE THIS YEAR"

Veteran investor Madhusudan Kela, Founder of MK Ventures, on Union Budget 2025-26, the future trajectory of the market, the Indian economy and more

- SIDDHARTH ZARABI

THE CENTRAL GOVERNMENT offered a big stimulus for middle class households in the Union Budget 2025-26 by ensuring that those who earn up to ₹12 lakh would not have pay any income tax in the new tax regime. This is expected to boost consumption and, hence, lead to a revival in corporate investment, which has remained tepid in recent years. The tax cut has turned the focus to stocks of companies in the consumption space. These companies had faced a demand slowdown, first in rural areas and then even in urban areas. Now, they are expected to see an increase in demand. As a result, their stocks could perform well on the markets.

Market veteran and founder of MK Ventures, Madhusudan Kela, tells Siddharth Zarabi, Editor of Business Today, that the capex theme was maintained in the Budget. For the long term, he advises investors to look at value and temper their expectations on returns, since the Bull run of the Indian markets has run into rough weather, thanks largely to developments abroad, especially the trade wars that US President Donald Trump has initiated. Kela believes in the strength of the rupee and says foreign investors, who have been "relentless" in selling Indian stocks, will return soon. Edited excerpts:

In the last few months, we have seen a pullout by foreign portfolio investors (FPIs) and consequent downtrend in the markets. But with the Budget, is it time for investors to resume their longterm investment?