Rohit Murarka shares strategic investment insights for Budget 2025, emphasising diversification, stability, and sector opportunities.

Rohit Murarka, a prominent figure in the financial domain, discussed key strategies and market opportunities in the lead-up to Budget 2025. He anticipates that the year will prioritise asset allocation strategies, following a robust bull market. Murarka emphasised diversification as a critical approach for managing portfolio risks, underlining the importance of spreading investments across various asset classes rather than relying heavily on one area. While markets may not experience a pronounced catalyst from every budget, stability and methodical planning remain pivotal in sustaining long-term wealth. Reflecting on the previous year's alterations in capital gains tax, he noted that frequent tax revisions could potentially unsettle investors and introduced uncertainty, often making it hard to align investment strategies. Though changes such as tax cuts may provide short-term relief, their repetitive nature should be cautiously observed as they can cloud market sentiment. On valuations, the correction in Nifty has brought rates into a more reasonable spectrum, albeit still slightly elevated when benchmarked against the 10-year average, leaving a mixed landscape for economic and market indicators. In this climate, Murarka recommends prioritising large-cap stocks over smaller alternatives, given the current uncertainty around market dynamics. Looking forward to sectoral growth opportunities, he highlighted the resilience of the pharmaceutical and BFSI (Banking, Financial Services, and Insurance) sectors. As Indian retail financialisation and borrowing trends gather momentum, these sectors may leverage structural tailwinds, compounded by the potential for rate cuts supporting wider economic expansion. He urged investors to avoid speculative 'bottom fishing' during market downturns and continue with systematic and disciplined investment approaches. By frequently averaging investments over time, one can mitigate risks exacerbated by market fluctuations. A well-balanced portfolio, including large-cap equities, gold, and exposure to international assets like US stocks, can serve as a prudent investment strategy. The perspectives shared offer actionable strategies for navigating a volatile economic environment, with long-term goals trumping short-term reactive decisions.