• 5 months ago
Transcript
00:00Hello and welcome to NDTV Profit.
00:09This is Meeka Barve and with me is Harsh Saita.
00:12Now with the budget less than a week away and around 40% of Indian investors being under
00:18the age of 30, I think it's key to know what the youth is expecting from the budget and
00:22that's exactly why we're here today at NMIMS and we're going to be speaking to the first
00:26and second year MBA students.
00:28Harsh, how are you feeling?
00:30It's going to be super exciting because this is actually in essence where a large chunk
00:36of the Indian population as well as the new Indian voter is coming from and therefore
00:41to try and understand what the real expectations are is going to be real real good fun.
00:45So let me first start off with the faculty here.
00:49Let me try and understand from them, from of course slightly older generation as to
00:54what their take is.
00:57Let me first start with you ma'am.
00:59So first off, thank you for doing this.
01:01I want to understand your take, your maybe two or three key asks from Modi 3.0's first
01:09budget.
01:10All right.
01:11So the first thing I would ask is growth for the economy and for that prudent investment
01:16is required and also supportive policies for MSME sector.
01:21Right.
01:22Extremely interesting.
01:23That is the first take from our teachers and let me take it to you sir.
01:29Your, you know, key two, three insights on what you feel should come out of this budget.
01:34So my colleague, whatever she has said about as far as the fiscal deficit, etc. is concerned,
01:41that is of course important.
01:42But one thing which I would like this particular budget to concentrate on is how to have the
01:48apprenticeship program in SMEs which can, which will allow the young people to be ready
01:55for the kind of industries, etc. which are going to come up now and they should be able
02:02to prosper.
02:03Well, you know, we've heard from the faculty, but now let's get to the students and you
02:07know, let's start off with you.
02:08Just tell me your name and your age.
02:10So my name is Sourav Gupta and my age is 23 years.
02:13Okay.
02:14Let me start off with one.
02:15What is your one key expectation from the upcoming budget?
02:17Okay.
02:18So as we can see that the headline inflation is within the upper band limit of RBI at around
02:225%.
02:23But the food inflation has shot up at around 9.3%.
02:26Now what government can do is they can provide tax reductions on certain raw materials that
02:32are required by farmers in agriculture like ammonia phase, which are still taxed at 18%.
02:36So that can reduce the cost for farmers and can have a cool down effect on inflation.
02:41Let's talk to some more students and you know, we'll start off with you.
02:44Please tell us your name and age.
02:45I am Skan Goyal.
02:46I'm 25 years old.
02:48So one expectation was sitting in a college and I believe that in India, there's a dirt
02:52of college.
02:53There's not many colleges.
02:54We've gone through a process to be here.
02:56So if we can see an increase in education budget, which can add to more in quantity
03:00and quality of education system in India, especially in higher education, and of course
03:04linking to the rural education and the primary education, then it's good, would be a good
03:08balance.
03:09Okay.
03:10You know, let's talk about some more expectations and start with your age and your name and
03:16let us know one thing you want the upcoming budget to maybe focus on.
03:18So my name is Naman Vashisht and I am 27 years old.
03:22So my expectation from the upcoming budget would be to boost R&D spending, which is to
03:27about 1.2 or 1.2% of GDP, which is just as of now is about 0.8% of GDP.
03:32Very interesting.
03:33So the awareness level seems to be quite high here.
03:35We've spoken about a whole plethora of issues and we've got a ton of students to go through.
03:40So I'm going to quickly go to the next one.
03:41Buddy, your name and your expectation.
03:44Hi, I am Charchit Agarwal and I'm a first year student MBA core.
03:49From what I expect the budget is to basically increase the allocation of budget towards
03:53the education sector, because currently what we have is around 2.93% of our GDP.
04:01The investment in education sector as a percentage of GDP is around 2.93%, while if you want
04:07to align with the global sector, it's more about 6%.
04:11So this is something that I think needs to be addressed in this budget.
04:15You know, we've been getting some key insights and most students are keen on talking about
04:18what they expect.
04:19So let's start off with you.
04:20What's your name and what is your one expectation from the budget?
04:21Sure.
04:22So I'm Laresh.
04:23I'm 23.
04:24And as the Indian economy is going through a recession and there are not enough job opportunities
04:29for highly qualified youth.
04:31So I would like government to focus more on the startup ecosystem, provide them fundings,
04:36reasonable funding so that they can create more job opportunities in the country and
04:41it can help in recovering the economy.
04:44Thank you.
04:45You know, let's move on to you.
04:46Yes.
04:47So my name is Aditya.
04:48I'm 21 years old.
04:49So I think the budget 2024 is a very important one.
04:52So following the interim budget, this budget could provide greater insight on artificial
04:56intelligence and IoT, Internet of Things.
04:59Let me come to you.
05:00So my name is Gautam Thakur and the department or the area which I would like to, you know,
05:06investments to increase this, especially in defense, considering that we already have
05:09a major chunk of the entire budget in defense, I would like to see a more focus towards R&D
05:14because a lot of our expenditure is in, in, into imports and, you know, different, different
05:20machineries and vehicles from external countries.
05:22Why don't we take initiative and get them done in our country directly?
05:27Can I come to you?
05:28Yeah.
05:29My name is Shivansh and my expectation on the budget is that more resources should be
05:33allocated towards renewable sources, though in the interim budget, 1 lakh crore was allotted
05:38towards the solar energy, yet the power sector continues to invest in the traditional sectors
05:43and with climate change being such a rampant factor in our lives, I think more allocation
05:47towards the renewable sources will really benefit us.
05:51Very interesting.
05:52The talking about where energy sources should really come from for the next generation all
05:58the way to 2047.
05:59Yes.
06:00You know, domestic manufacturing, higher education has been a key focus and that, you know, let's
06:04get some more insight.
06:05Hi, your name and your age.
06:07My name is Kriti Kalra.
06:08I am 22 years old.
06:11The deduction on health insurance premiums has remained unchanged for the past nine years,
06:16even though the health care costs have gone up.
06:18So in this budget, we are expecting some hike on deduction of premiums.
06:22For individuals right now, the limit is 25,000.
06:25So we are expecting it to exceed to at least 50,000.
06:29And for elderly, it's just 50,000.
06:31So we can expect a hike to 1 lakh.
06:33Well, there you go.
06:35Some better support for insurers.
06:37And let's go on with you, your name, your age and your expectation for the upcoming
06:41budget.
06:42Yeah.
06:43Hi, my name is Rishabh.
06:44I'm 26 years old.
06:45So my expectation from the budget would be a bit on the direct taxes side.
06:47The standard reduction hasn't been increased from one and a half lakhs for quite a long
06:51time.
06:52We're expecting it to increase to at least 2 lakhs.
06:54The old regime and the new regime, there was a difference that was created last to last
06:58time the budget came out between an old regime and a new regime.
07:01People thought that new regime would be better.
07:03So the people who are in old regime wanted to shift to the new regime.
07:06So we are expecting that some benefits will be given to people who are in the old regime
07:09as well.
07:10Well, there's so much awareness.
07:12There's also tax law being discussed here and individual taxation.
07:16Despite we speaking to a bunch of college students, the awareness seems to be high.
07:20Let's come straight to you, sir.
07:22So my name is Abhijit Sharma and I'm 24 years old.
07:25So I think with this budget, there should be an increase pending in the defense sector.
07:29I have a similar view to Gautam's.
07:31So I think majority of the portion of the defense budget that we currently have goes
07:34to the salary and compensations of the current employees.
07:38It leaves less amount of spending for actual purchasing of defense equipments.
07:43So I think there's a factor that requires at least 10 to 15 percent of increase in the
07:48current budget.
07:49Good.
07:50That's good to hear.
07:51Come on.
07:52Hi, my name is Qasim Hussain.
07:53I'm 22 and I want to talk about the pharma industry.
07:56So I've been following it for a while and a very major issue here is that MNCs are finding
08:03it hard to research, get into research and development, even for major illnesses.
08:09India is finding it hard as a whole to get into research and development.
08:13Subsidies are required here.
08:15Well, it's interesting because essentially the youth is not just asking for free, you
08:23know, for free, for free, for free SOPs.
08:27What they're essentially asking for is for the government to invest in R&D as well, which
08:31is very interesting.
08:32Yes.
08:33And with R&D comes domestic manufacturing that seems to be a key focus over here.
08:37And let's go on.
08:38Move on to you.
08:39Please tell me your name, your age and your one expectation from the upcoming budget.
08:42So my name is Om Vyas.
08:44My age is 22 years old.
08:46And I think one thing which we should expect and which we might already expect is some
08:51relief or some changes in the tax structure.
08:54OK.
08:55Thank you so much.
08:56Let's move on to the next student.
08:57Hi.
08:58Your name, your age and your one expectation from the upcoming budget.
08:59Yeah.
09:00Hello.
09:01My name is Harish.
09:02I'm 26 years old.
09:03Being a management student and also being a budding entrepreneur, my expectation is
09:08to let go with the angel tax.
09:10As we see, we have a lot of budding startups coming up in India and currently government
09:14is taxing 30 percent as angel tax.
09:17And this is causing a big hindrance for the startups to gain to source funding from the
09:22foreign investors as well as domestic investors.
09:25All right.
09:26Let me come to you.
09:27Give us your name, your age and your expectations.
09:30Hi.
09:31My name is Harish.
09:32I'm 23 years old.
09:34And the expectation which I have with the government is that I want them to increase
09:38their spending in research and development, because if we see currently our spending is
09:43less than one person and we see as opposed to other developed countries like South Korea,
09:48they spend upwards of 4 percent of the GDP on their research and development.
09:52Hello.
09:53My name is Niyati and I'm 24 years old.
09:55Healthcare is one of India's largest sectors and it is growing continuously.
10:00The government is aiming to reach 2.5 percent of its GDP invested in healthcare by 2025.
10:08To achieve this, the government should focus more on integrating technology into the integration
10:15of technology in the healthcare space.
10:17Right.
10:18Very interesting.
10:19Ma'am, let me come to you.
10:20Hi.
10:21I'm Satvika.
10:22I'm 25 years old.
10:23So I'm an engineer pursuing my MBA.
10:26Naturally, I'm very curious to know about the advent of AI.
10:29I feel in today's age, AI should be recognized as a sector in itself.
10:33I'm curious to know what the budget holds for that.
10:36AI can really help us propel innovations in healthcare, education and agriculture.
10:42So I'm looking forward to the budget.
10:44Let's shift focus though to equity markets, because I think the viewers will also be really
10:51interested to understand how the youth of India, most of them being below the age of 25,
10:56maybe just one I heard was 26.
10:59But outside of that, everyone under the age of 25.
11:02And therefore, very interesting to see what they feel about investing.
11:06So if we can quickly take a quick poll from all of y'all.
11:10How many of y'all invest in equities?
11:13Just a show of hands.
11:17Right.
11:18Nearly everyone.
11:19Nearly everyone.
11:20Maybe just a couple of hands you're not raised.
11:22Very interesting.
11:23And how many of y'all fundamental investors?
11:29All right.
11:30Okay.
11:31And what about F&O and technical investors?
11:36Okay.
11:37Very, very interesting.
11:39Let's start with this.
11:41Do you invest?
11:42Yes, I do invest, but majorly I trade.
11:45You trade.
11:47And when you do trade, do you think your risk appetite is more or you're a little more,
11:53you know, moderate in terms of your risk taking capacity?
11:57I'm a moderate trader.
11:58I do not take so much risk, but I tend to ensure my risk reward remains 2 is to 1.
12:03And do you have investments in other modes like gold?
12:06No, I do not invest in gold as of now.
12:09Let's take it to some other people.
12:11Do you invest?
12:12Yes, I do invest.
12:15And being a very conservative investor, I try to diversify my portfolio.
12:18For example, being a youth, I'd almost invest 50% into equity.
12:22I try to balance it by investing more 20% into bonds, fixed deposits, and also 10% around
12:27in the gold.
12:29Plenty of investors, all investing, at least one of them investing from his own income.
12:33So very interesting.
12:34Let me come to you.
12:36Aditya, if I'm not wrong.
12:37Okay, excellent.
12:38So Aditya, tell us, where do you invest and what got you into investing?
12:43So what got me into investing is so being a commerce student, I like numbers.
12:46So I read the stock market before investing.
12:49And my favorite thing is to invest in diverse sectors.
12:52And out of which if I have to select would be the banking sector.
12:55So I focus more on the banking sectors and also Bank Nifty.
12:58All right.
12:59So, so which banks do you like right now?
13:01Currently, it would be HDFC Bank and ICICI Bank.
13:04Okay.
13:05And why do you like them?
13:06So ICICI Bank is now going to be the key factor in the UPI sector.
13:11So they would be the primary holders of the UPI.
13:13So the at ICICI Bank.
13:15So yeah, I think ICICI is a good one.
13:17And HDFC, of course, is in top three private banks.
13:20So it would be my favorite stock.
13:22Okay, excellent.
13:23What about you, sir?
13:24So yes, I invest in equity markets.
13:26Yeah.
13:27So currently, I am bullish on automobile sector.
13:30So because we can see that there is a premiumization trend going on automobile two wheelers.
13:35So the companies like Hero or Bajaj, even who are the market leader in entry level segment,
13:39they are manufacturing more and more premium two wheelers.
13:41So the profit margins of these companies are expected to rise.
13:44And if they even trade on similar PE levels, the prices will automatically rise because
13:49of rise in the earnings.
13:50Interesting.
13:51So fundamental research, is that how you go about?
13:54Yeah, fundamental research.
13:55Okay.
13:56How do you generate capital if you are a fundamental analyst?
13:58So the capital can be generated.
14:00For example, if we invest some today, the capital will be generated over a period of
14:04time.
14:05Sure.
14:06But how do you make your first investment?
14:07From what capital?
14:08Right now, like recently, we all have some decent amount of money on our bank because
14:12we were doing a summer internship.
14:14So we got a decent amount of money from informal stipend.
14:17So yeah.
14:18All right.
14:19So very interesting.
14:20Banking, auto.
14:21We've covered, we've started covering sectors now.
14:24Yes, we have.
14:25And you know, these, while we are, they are students, there seems to many people who've
14:31also, you know, kind of up in the market, but in terms of more complicated aspects.
14:37I saw you raise your hand for F&O trading.
14:39How did you get into it?
14:41And you know, how, is it for a long-term perspective or surely short-term?
14:46So coming from medical background, I had no idea what stocks are, but my father motivated
14:51me to invest in stock market.
14:53So when I started, I used to do swing trading, but recently I've started doing trades in
14:58F&O.
14:59So as of now, I do only in Nifty because that's a safe option.
15:04But yes, it's going to be long-term because it's risky.
15:07So I am taking it slowly.
15:09And how did you get the capital to invest?
15:11And especially when, you know, in a segment like F&O trading, like you said, it is risky.
15:15So how do you kind of manage that?
15:17So in the beginning, I took some money from my father and with swing trading, I generated
15:23some profit.
15:24And now I am reinvesting that profit in F&O.
15:28Okay.
15:29Yes, you have even people getting into the more complicated aspects and you know, let's
15:34move on to it.
15:35Do you invest?
15:36I do invest.
15:37What got me into investing was my grandfather.
15:38He is a proper investor and I have seen shares worth 10 rupees going up till 700 as well.
15:44And me buying those shares at 700, he used to tell me that, why did you buy it at 700?
15:48I have those shares and I bought them for 10 rupees as well.
15:52So yeah, my goal was purely to just invest for long-term.
15:57I have many stocks that are purely just kept for the long-term goals.
16:01And there are some stocks that I sell quickly because the return is good enough.
16:05Then I reinvest the profit and the money for something better.
16:08So your investment strategy is also for the long-term, but also, you know, your short-term
16:13profits to help your long-term benefits.
16:16Well, very interesting.
16:17Whole host of or a lot of types of investors also getting uncovered here.
16:23Let me come to you, sir.
16:24Tell me.
16:25Yes, I do invest and I invest for long-term to generate my wealth in the longer term.
16:30And I like to, I started investing because for my undergrad, I was a chemical engineer
16:35and I got interested in the chemical sector and that's how I started investments.
16:39Okay.
16:40So predominantly, do you focus only on chemicals or do you focus, do you also buy other sectors?
16:45So I started off only with chemicals and then it moved on to the various sectors.
16:48Currently, my favorite sector is banking and other manufacturing sectors with especially
16:52with the make in India focus.
16:54So what do you think of the speciality chemical sector right now?
16:57It's in the dumps.
16:58Is it time to buy?
16:59Yes, I think it's time to buy now because especially with after covid and there was
17:03a stocking up in chemicals throughout the world.
17:05So now once the de-stocking is done, this is the time I think we should buy all the
17:09chemicals.
17:10When do you expect the de-stocking to get complete and when do you expect the sector
17:13to turn around?
17:14Most of the companies have said that the de-stocking is done between this quarter and the next
17:18quarter.
17:19So I think the sector should start turning up in the later half of this year.
17:23Well, well, well, they know their stuff.
17:25Okay, let me come to you.
17:26I also invest.
17:27I invest for both short term and long term.
17:30My favorite sector is defense.
17:32Okay, defense, but defense has given very good returns.
17:36Are you still buying defense?
17:37Yes.
17:38Oh, wow.
17:39So what?
17:40I'm holding defense.
17:41You're holding defense, but you're not buying.
17:42No fresh positions.
17:43And are you into trading or investing?
17:45I am into investing.
17:46Okay.
17:47And what defense stocks have you bought and at what valuations if I can ask?
17:50I'm asking you for quantity, just the valuation.
17:52So my current major holding is HAL and I bought it at the price of 3000.
17:57Okay.
17:58It is currently at around 50 to 5300.
18:00Okay, let me come to you.
18:01Any investments you make, whether equities or gold?
18:04No, I just invest in equities.
18:07Recently, I've just been investing in one company for a long time.
18:11It's been J&K Bank.
18:12So, yeah, I do know a little about the banking industry and specifically when it comes to
18:16this company, I feel after Article 360, there has been so much boom in J&K and so that reflects
18:23in the price of this company.
18:25So I bought this stock at about 30, it's 120 right now.
18:29Got it.
18:30Got it.
18:31Very interesting.
18:32Very interesting.
18:33The investors here know their stuff and it's primarily been equities all from what I've
18:37heard.
18:38Let's start with you.
18:39Do you invest and in what modes?
18:41Yes, I definitely invest.
18:43I invest in equities, mutual funds and gold as well.
18:47And basically I invest in, I invest through opportunities in equities.
18:53Like I find opportunities in fundamentally good stocks.
18:56For example, Polycab recently had a news about the income tax rate, but we definitely know
19:02it was just about 1000 CR and the company is around 50,000 CR.
19:07So that was a really good opportunity to buy.
19:10Then same happened with Kotak Bank.
19:12There was just some technical glitches and there were some questions, but then again
19:17the stock price dropped massively and I purchased.
19:20You know, you mentioned you invest on based on terms of opportunities.
19:23So sector wise, where do you think the opportunity lies right now in the market?
19:26I think opportunities really lie in the defence sector right now and the public sector stocks
19:32as the government is really focusing and I'm looking up to the budget as well.
19:37Well, defence is something that we see is a fan favourite and the youth is bullish on this.
19:42Do you invest?
19:43Yes, I do invest.
19:44I do invest in equity.
19:45The sector that I look forward to is pharma, I feel.
19:48I think India is now the second largest manufacturers of APIs.
19:51So pharma has an immense potential in both export.
19:54So sector that I look forward is to pharma and public sector units.
19:58Are there any companies that specifically within the pharma?
20:01Because it's a diverse range of companies you have there.
20:03Ajanta Pharma is doing really well.
20:05RPG Life Sciences is doing well.
20:07So like these two companies to look out for.
20:09Okay, thank you.
20:10Do you invest and with what?
20:12Mainly mutual funds, especially in the debt and equities.
20:15So I feel like right now, green energy is something which is really popular.
20:19And given how our infrastructure growth has been, investing in both infrastructure as well as green energy
20:23is really important for not only our sustainability, but also ensuring profitability over time.
20:28Yeah, but when you talk about green hydrogen, there's still a lot of room for growth,
20:32but still years down the line.
20:34And you mentioned mutual funds.
20:36So do you feel sectoral mutual funds are where your preference is at?
20:39Or do you want a mutual fund that is more diversified in nature?
20:42Absolutely. I feel like infrastructure and green energy sector, these are the funds we should be focusing on,
20:46especially with the growth aspect.
20:48And overall, we can have multiple ways of investing,
20:52but a sectoral or a thematic approach is much better as it helps you capitalize the potential
20:56and the strong points of a particular sector.
20:59But do you think there's some kind of risk when, you know,
21:01there's something happening in the sector that is not so positive for it?
21:04So doesn't that take a toll on your investments?
21:06Absolutely. That risk is always there, especially given for green energy financing,
21:11our relationship with other geopolitical nations such as the Middle East, that is very strong.
21:15So there's a very high possibility that we do not shift to green energy over the next 20 or 30 years.
21:19So as a result, there are risks involved.
21:21But as is with life, risks are always important to gain profitability.
21:27Right. And do you feel valuations are a little on the higher side, especially in this space,
21:32especially since 2020, since COVID, where ESG investing became really big?
21:36Absolutely. I feel like valuations right now are slightly higher than what they should be.
21:41But ideally, over time, the markets will correct themselves.
21:44And probably in the next 10 years, I feel like most people will realize that these valuations are absolutely correct.
21:48Got it. And so are you buying right now or are you holding whatever you've bought?
21:54Right now, I'm holding. I'm still waiting for the government policies to get much more mature,
21:58much more focused in a particular area. And only then I would start investing again.
22:01Very interesting. So, you know, there was a generation, Mika, which I mean, both of us haven't seen that.
22:08But there was a generation which felt that the stock market was all about satta.
22:12Right. And it seems that the next generation wants to participate in the economy.
22:20And what better way to participate than financialization of savings?
22:24And that's exactly what's really playing out. So, you know, just talking about how our interaction has gone.
22:32It's been informative. It's been fun. And we've been able to capture exactly what we wanted,
22:40which is that the youth is well aware of what the budget expectations should be
22:45and what their return expectations are from markets.
22:49And they also seem very well researched in what they're investing. They know where their money is worth.
22:53And that's what we've seen. We've seen some common themes emerge when it comes to budget expectations as well as investing patterns.
23:00And, you know, when it comes to budget expectations, themes like tax, higher education was something key.
23:06And it is going to be, we are speaking to students here, even when we spoke to them about their investing goals,
23:14it's long term, but it's not they're not shared to do something short term.
23:18Absolutely. But with that, completely out of time on this one from me, myself and everyone who put the show together.
23:24Thanks so much for watching. Thank you, everyone, for coming in and spending time with us.

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