Vinit Sambre, Head-Equities, DSP Mutual Fund believes that the reason for a lack of enthusiasm as we hit all-time highs is due to bigger issues. “Investors are cautious about valuations of the markets and global concerns like a fear of recession that is preventing more excitement.”
Sambre is of the view that every dip in the market will be bought. “Global investors are showing a lot of interest in the markets.” When it comes to sectoral opportunities, he believes that the pharma sector is very structural with plenty of opportunities. “Banking is a sector where the performance of large and mid-cap banks has been steady. They have cleaned up their balance sheets and are poised for healthy credit growth. The IT sector has corrected from highs and we will enhance exposure here.”
Engineering, though he says has a good long term outlook but returns have come in early. The consumption sector valuations are not reflecting a slowdown and there is high competitive pressure, says Sambre.
“We are worried about supply chain challenges within the auto sector but in the bigger picture we have exposure here. The Argi sector has opportunity and companies have good distribution and brands and like Pharma are trading at reasonable valuations.”
Sambre believes that investors should not differentiate private and public banks. “PSU banks have traded at lower multiples and have the capability to improve operating metrics which is where the rerating takes place.”
