Budget 2021: It is more about implementation than about intent, says UTI AMC's Vetri Subramaniam

People make too much noise about the budget, said Vetri Subramaniam, Group President and Head-Equity at UTI Asset Management Company, on Friday. Subramaniam believes the impact of the budget over the years has declined and the market tends to get in a frenzy in both directions.

“The most important thing in this budget is not where you spend but how quickly you spend. It is more about implementation than it is about intent,” he said in an interview with CNBC-TV18.

The September quarter delivered surprising earnings, he said. “As against the expectation of a decline, we had 17 percent earnings growth. Based on all the high-frequency indicators, the recovery in growth – the trajectory of that recovery sustained through the quarter-ended December. So I won’t be surprised if some of that shows up in the numbers.”

From an asset allocation point of view, he advised, “Stick to the discipline, this is not the time to raise your allocations,” he said.

In terms of sectoral preference, he said, “We do have exposure in areas like metals, automobiles where we think the cyclical strength can play out quite significantly but we have never lost or moved away from exposures in what we believe are some of the most comparative companies in India which can compete in the global markets and these are companies in IT, in pharmaceuticals and in manufacturing. There is a lot more attractiveness in some of the domestic cyclical names.”