2018 to be a volatile year with consumption based stocks riding high
Harsha Upadhyay, Fund Manager, Kotak Mutual Fund
Jan 25, 2018 | Source: CNBC TV 18
For 2018 thus far, both Sensex and Nifty have given 4-5% returns and have also clocked fresh milestones
Mr. Harsha Upadhyay is of the opinion that adding to large caps will be better as valuations are slightly better than mid and small cap stocks.
While, signs of earnings and economic recovery are visible, the macro situation is more challenging than 12 months ago.
The Fund Manager also cautions saying, 2017 was devoid of volatility but the current year could be more volatile and thus investors should enter the markets with a long term horizon.
In addition to large caps, Harsha Upadhyay says investments can also be considered in stocks from agriculture, rural economy and infrastructure among others due to supportive policies.
Companies which are two or three tier companies and that have moved up without fundamentals are those which need to be avoided in the current volatile scenario.
The fund manager is bullish on consumption space as he sees volumes and margins improvement based on cooling off of raw material prices.
In case of Financials, Kotak Mutual Funds fund manager prefers retail focused private sector banks as well as insurance names. There is huge scope for these banks going ahead.He also mentioned that one may find opportunities in corporate lending side and PSU Banks. He also mentions that for the financial sector hardening of yields is seen as negative as short term profits of these companies could be under pressure.