Harsha Upadhyaya is bullish on these sectors

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

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Kotak Mahindra AMC’s President and CIO-Equity Harsha Upadhyaya, who manages funds worth ₹3,203 crore is overweight on domestic cyclicals such as industrials, cement, automobiles, among others.

He is also bullish on two-wheelers, citing sustained volume growth and improving margin profiles as key drivers.

“We continue to be positive on two-wheelers within the automobile segment. After a long time, we have seen volume growth sustaining and also the impact of two-wheeler electric vehicle (EV) seems to be not as much as what the market was fearing earlier,” he added.

Upadhyaya has some position in banking and financials but is still underweight on the sector.

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According to him, valuations in the market continue to be the primary risk for the market at this point in time.

Along with that, the Middle-Eastern conflict also seems to be escalating. “We need to watch that space and also how it impacts the crude oil price. That is going to be very important,” he said.

Current valuations don’t leave any room for disappointment, so the earnings delivery is crucial for the markets to sustain these levels or go higher from these levels.

What happens in the Middle East is going to be crucial in the very short term, he said.

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He has also booked some profits in the IT sector when the sector witnessed an upmove in recent times.

“Overall it doesn’t seem that immediately there is going to be anything that is going to excite the market from the IT sector,” he said.

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Pharmaceuticals, he believes, is one space where one can have a neutral position at this point in time.

This is because the domestic as well as export growth continues to be reasonable and there are no large regulatory headwinds at this point in time.

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