The fund house believes that a big
upside in indices from this point is difficult, but does not expect any major
correction due to good macros
Even as the market
soars to a new high everyday, there are experts who see the momentum slowing
down.
DSP BlackRock
Investment Managers, for instance, believes that the market will now remain
rangebound in the next 6-12 months. “In terms of valuations, we are at the
upper level of it. Making a case now for a big upside from this point is
difficult,” Atul Bhole, VP & Fund Manager, DSP BlackRock Invst Managers
told CNBC-TV18.
Having said that,
Bhole does not expect a big correction in the market as macros have started to
fall in place and interest rates have come down. So, how does one play this
market? Bhole believes there is a lot of scope for stock-specific action. “If
the stock selection is right in the large-cap space, there is good money to be
made in 2-3 years,” he told the channel.
Speaking of the sectoral
action, he said, while he is overweight on the oil and gas sector, cement and
construction companies too look good in the backdrop of the economic scenario.
Among midcaps, from a
long term investment horizon, it is best to be in the consumer-centric companies.
One could look at FMCG and durables space, Bhole said.
He
highlighted that although the growth profile of IT companies has reduced
to 6-10 percent, their valuations in terms of PEG (price/earnings to growth)
are still higher. He expects the sector to consolidate in 6 months to 1-year's
time frame.
Meanwhile, he prefers
staying away from the telecom space on the back of challenges that the sector
is facing. Every firm is implementing its own strategy and companies are taking
a longer time, compared to what investors seek, he added.
Simultaneously, on PSU banks, the fund house is very
comfortable as slippages are trending down and 90 percent stressed assets are
recognised. In this context, valuations are attractive, he added. The new
issue, however, is the merger and acquisition buzz in the space.
Disclosure
Multibagger Stock recommendation provider is a Independent Equity Advisory Company backed by experts. These market news is only for knowledge purpose only.
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