According to Holland, the fragile state of the economy leaves little room for a populist Budget
Weak earnings and the nervousness in global markets are bigger causes for concern than the verdict of the Delhi assembly elections, says Andrew Holland, CEO, Ambit Investment Advisors.
In an interview to CNBC-TV18, Holland says expectations from the Union Budget have increased further because of the drubbing BJP has taken in the Delhi polls.
According to Holland, the fragile state of the economy leaves little room for a populist Budget. He expects the market to see a good pre-Budget run up.
He says the loss in Delhi is a good reality check for the BJP and that the government needs to ensure that its policy actions translate into results on the ground.
Holland is bullish on banks and expects the RBI to cut repo rate by 100 basis points by June.
Interview transcript to follow