Market gurus spot opportunities in banks, pharma, manufacturing and IT sectors.
My sense is that the next global boom will be non-tech. But I have no clue whether it will be defence, energy, finance or real estate.
FII selling – When both FIIs and retailers want to buy, you will have a Diwali.
IT stocks – IT is a blessing for India. It is a great sector and sustainable but the only challenge for IT is growth rate. Expect the growth rate to be lower due to the slowdown in the US.
Defence stocks – The upside is priced in after the run-up.
Bank stocks – Bank margins should hold up or improve in a rising interest rate scenario. Still see value in some banks.
Pharma stocks – There is sufficient margin of safety in pharma valuations at this juncture. Increased weightage on pharma in portfolio as select pharma companies are trading at attractive valuations.
Market outlook – India will not underperform as the party has just begun. It is a myth that Indian valuations are expensive.
FII flows – India is transiting from being part of global emerging markets to becoming a single country allocation
Market opportunities – Bullish on banking and manufacturing sectors.
Midcap pick –
can be such a big dark horse that it can give you a 50% return from this Diwali to the next. I think the numbers were very-very smart. They have a book of Rs 40,000 crore and a market cap of Rs 6,500 crore.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)