Kotak Mahindra AMC Sees No Downside To Markets On Robust Foreign Inflows
The asset manager said it’s building positions wherever it has confidence in terms of earnings visibility or valuation comfort.
Kotak Mahindra Asset Management Company Ltd. expects no further downside to the market as foreign inflows have been consistent despite concerns around the Indian economy.
“The inflows are quite strong... Liquidity may support market at the entry level,” Harsha Upadhyaya, chief equity investment officer of Kotak Mahindra AMC, told Bloomberg Quint in an interaction. He said robust inflows, especially from foreign investors, have kept the market afloat.
This comes at a time when overseas investors funnelled $1.13 billion into Indian equities in May, according to data from National Securities Depository Ltd. That was despite India’s gross domestic product growth in the quarter ended March declining to a five-year low.
Kotak Mahindra AMC isn’t chasing any particular sector or stock at the moment, said Upadhyaya. “We’re gradually building positions in wherever we have confidence in terms of earnings visibility or valuation comfort is available.”
Sectoral Bets
- Reduce exposure to consumption-driven sectors like automobiles, consumer durables and fast-moving consumer goods.
- Underweight on non-banking financial companies and public sector banks.
- Portfolio focused towards private banks and companies linked to economy and investment growth.
- Industrial sector has attractive valuations; visibility to extend in 18-24 months as government starts to invest on infrastructure or industrial side.
- Remain in basket where leverage is less.
Watch the full interview here: