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Mahesh Patil cautious on globally-linked sectors; overweight on BFSI, autos, cement
KV Prasad Jun 13, 2022, 06:35 AM IST (Published)
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Summary
Mahesh Patil, Chief Investment Officer, Aditya Birla Sun Life AMC believes the Indian market has been fairly resilient despite concerns on the global front in terms of the interest rates remaining higher for a longer period. “It is not just the Indian markets, global markets are also holding on fairly well,” he said in an …
Mahesh Patil, Chief Investment Officer, Aditya Birla Sun Life AMC believes the Indian market has been fairly resilient despite concerns on the global front in terms of the interest rates remaining higher for a longer period.
“It is not just the Indian markets, global markets are also holding on fairly well,” he said in an interview with CNBC-TV18.
He is overweight on sectors like banking and financials, auto, real estate, consumer discretionary, cement, and telecom. He also believes demand in real estate has improved, which could help the building materials space as well.
Also Read | Strong demand, declining costs to boost cement sector: Axis Capital
Financials is another sector he expects to do well. “With interest rates likely to remain higher for a longer period of time, the net interest margin (NIM) compression which one was expecting in the banking sector will happen in this quarter but one will see margins remaining fairly decent.”
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On the information technology (IT) sector, he said the shift towards digital, and tech spending improves the long-term outlook. Lots of negatives are also priced in. However, he remains cautious on the sector.
“Indian companies have still done well. But don’t expect any near-term outperformance in the sector,” he stated.
Also Read | India’s retail inflation eases to 5.02% in September, IIP rises to 10.3% in August
He pointed out that midcaps and smallcaps have outperformed large caps and this could mean they will see a larger sell-off if there is one.
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