IT is a ‘wait and watch’ for us, says ICICI Pru AMC’s Anand Shah

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

According to Anand Shah, Head of PMS and AIF Investments at ICICI Pru AMC, information technology (IT) is a great business as it generates good profits, and has also been rewarding investors with dividends and buybacks etc. However, currently, the sector is facing growth challenges.

“So it is a wait and watch for us. We have not owned IT for the last 18 months. We are still looking to see what is the right time to own it,” he said.

While there is euphoria in various segments of the market, private banking has been a laggard and valuations now look reasonable, he stated.

He believes valuations are no longer as compelling as they were three years back. “To that extent, the way forward would be bottom-up, stock picking and within that market is in the mood to reward the market share gainers,” he said.

Also Read | Rooftop solar key to meeting India’s growing energy needs, say experts

Assuming there is a political continuity post-general elections 2024, he believes the key focus will be on manufacturing.

“As a country, we have been a large consumer of goods but weren’t the large manufacturer of goods. That is something which is changing. As a government and as a country, we are geared to get the manufacturing going in this country after a long time,” he observed.

Also Read | PSU Alert: NHPC announces collaboration with a Norwegian company, market cap nears ₹1 lakh crore

Shah thinks this is a good time for corporates to start with capacity expansions (capex) not only for domestic consumption, and import substitution but also for exports.

For more, watch the accompanying video

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow