Prashant Khemka, MD & CEO at White Oak Capital Management joins ET NOW in our exclusive 12th anniversary special edition to give us an overview about markets. Market are factoring in Fed’s Taper talk. Fed’s Hawkish stance in-line with Inflation Outlook.
Inflation expectation benign for the last several years and any change could impose greater repercussions. To address this issue, Fed might increase or taper rates to keep a check on inflation expectation. Believe because of supply chain dislocation there is certain transitionary element to inflation. “Right now, there is no material risk of Inflation running away,” says Prashant Khemka.
Overview about Portfolio composition. Prefers to have a balanced Portfolio. Seeing attractive opportunities in the financials, especially quality private sector banks. Large allocation in the financial sector. Of the opinion, Banks that were considered to be more corporate ten years ago might be more retail currently.
“Distinction between retail and Corporate no longer applicable today as it use to be”, says Prashant Khemka. He believes distinction is more matter of perception now than reality. He believes we have one of the best retail liability franchise in India. The portfolio mix also comprises industrials, cement, and Auto as well.
Many other countries in Asia are manufacturing hubs for global requirement. India was a laggard, over 5-7 years continuous efforts and initiatives are taken by the government to put in a fair share.
“PLI Scheme is one of the most successful schemes and implemented in the most efficient manner,” says Prashant Khemka.
The companies have lived up to the expectation and gained market share. He believes ease of doing business has certainly improved, as result companies are setting up electronic manufacturing services. He’s of the opinion earliest movers will get an added advantage.
Believes dynamics in IT sector rapidly changing.” What was discretionary IT spend a few years ago is a necessity now” says Prashant Khemka. Seeing rapid rise in the demand environment, worry is on the supply side and not on the demand side. Next 2-3 years very promising for the sector.
