Right price, right time: Volatility unlocks opportunity

The announcement of ₹1 trillion in tax savings in the Union Budget is certainly welcome news. However, according to Vikas Khemani, founder of Carnelian Asset Management & Advisors, the rally in consumer stocks may soon lose momentum due to unfavorable valuations and potential market disruptions. In an email interview with Samie Modak, Khemani emphasized that 2025 is a year to manage expectations carefully and to remain disciplined and committed to long-term investment strategies. Edited excerpts:

- VIKAS KHEMANI

What are the key takeaways from the market and economic perspective? This Union Budget is good and progressive, especially with the cut in personal income tax. It's great news for the middle class because they'll have about ₹1 trillion more in their pockets to spend. The government has chosen the path of fiscal prudence, which is again good, though the market might have expected a bit more loosening on the fiscal side.

Overall, it's a solid Budget with no negative surprises. It also incorporates numerous reforms aimed at increasing farm incomes and supporting farmers. There are considerable measures in place to assist micro, small and medium enterprises and to boost exports, making this a well-rounded Budget that addresses the diverse needs of the populace.