Market guru Rajeev Thakkar said that India’s consumption-oriented space is heaving a sigh of relief as valuations have become very high, adding that the current valuations leave no comfort for stock prices to rise.
Speaking with Business Today TV’s global business editor, Udayan Mukherjee, Thakkar said the performance of private sector banks has been very good, in terms of the numbers they report, their balance sheets are clean, credit costs muted And credit growth is back. “Therefore, broadly there are pockets in the market which are overvalued. We are staying away from them and we are trying to find attractive buys in the undervalued space,” said Thakkar, CIO and Director, PPFAS Asset.
Elaborating on his outlook on the banking, financial services and insurance (BFSI) sector, Thakkar said he is very positive about the sector. The focus is on companies that are relatively asset-light, where there is not much chance of losses, and which can participate in the overall growth, he said, adding that his choice would be private sector banks, select NBFCs and then public Huh. Area Banks.
Market leaders are quite optimistic about the technology sector. According to Thakkar, there has been more focus on profitability and more focus on cost control, adding that strong companies are monopolies in their area of operations and their valuations are not at all demanding.
Thakkar said investors venturing into the equity market should prepare for the long haul and not expect an environment where there is no volatility. “If someone is willing to come and invest for at least four or five years, there is a possibility of good returns,” Thakkar said.
