This analyst believes the market will stay rangebound post-Budget 2023

After losing over 500 points in two sessions, the Nifty 50 managed some gains on Monday, but not before having its fair share of volatility. The index traded in a 300-point range and saw wild intraday swings through the day.

In an interview with CNBC-TV18, Dhiraj Agarwal, Co-Head of Equities at Ambit Capital said that after the budget, he expects the market to stay rangebound.

Agarwal mentioned that the budget has not had a significant impact on the movement of stocks in recent years, as it is primarily an accounting exercise.

“Our preference is at this point, a huge rally despite whatever the budget does or tries to do is going to be a bit difficult. So still looking at a little bit of a range bound market scenario with a slight upward bias, but not a completely breakaway market,” he said.

Talking further about the budget, Agarwal said, “Budget is what it should be. It is an accounting exercise of the government’s revenues and expenses and a bit of tilt towards capex, fiscal deficit, etc., which drives a bit of macro. Most of the policy announcements and the big policy shifts are now outside the budget, which is the way it should be. So, I have no budget recommendations, positive or negative at all.”

Agarwal expressed that he would be surprised to see more than a 4-5 percent move in the market by December. He also mentioned his expectation of the fiscal deficit to be contained.

The government's focus, according to Agarwal, will remain on infrastructure. However, he warned investors not to expect similar returns from banks this year as compared to the previous year.

In conclusion, Dhiraj Agarwal believes that the budget may not bring about major changes to the stock market, and investors should be prepared for a range-bound market in the coming months.

For more details, watch the accompanying video