In this program of our Mantra Series of Prosperity from Diwali to Diwali, we are talking to Nilesh Shah, the veteran of the mutual fund industry. Today we will try to know from them that where is the key to earning big on this Diwali and from this Diwali to next Diwali, where will the money be made and which theme will do wonders in the next Samvat?
Talking about market and economy Nilesh Shah, MD & CEO, KOTAK AMC It says that global challenges will continue in the market for the next year as well. The Russo-Ukraine War continues to this day. Higher interest rates, inflation will continue to be a problem for the market. Crude price risks remain. Nilesh Shah further said that Indian market is expensive from 1 year perspective but Indian market is cheap from 5 year perspective.
In this conversation, he further said that in the event of a nuclear attack by Russia, the market will fall. If the Fed cuts rates further, the market will rise. There will be volatility in the market this year. Investors should not panic about the volatility of the market, but keep the strategy of investing in the falling market.
In which theme money will be made? Responding to this question, Nilesh Shah said that bank-finance will outperform. There are good opportunities in the banking and financial sector. Consolidation continues in the banking sector. NPAs are seen at the lowest level in a decade. On the other hand, increasing interest rates will increase the margins of banks. Valuations have become attractive after correction. Next year banking-finance will be the biggest performer.
There are also good opportunities for investment in capital goods, engineering. Nilesh Shah says that chemical stocks have seen a rally for the next several years. The trend of China + One will continue for the next 15-20 years.
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money will be made in manufacturing
Nilesh Shah says that there is a lot of growth potential in the manufacturing sector. Shares related to Chemical, Construction Materials are liked by Nilesh Shah. He further added that manufacturing exports have increased due to the China+ theme. Along with government spending, the manufacturing sector will also get the benefit of private capex. Manufacturing performance is expected to be good for the next 1 year.
While talking on the auto sector, Nilesh Shah said that our attitude has become overweight on the auto sector. The demand for passenger vehicles is very good. Auto equipment companies are doing well. Investors will be advised to invest in the auto sector.
Talking on the IT sector, Nilesh Shah said that there is uncertainty in the IT sector due to the fear of recession in the US. IT results good, but commentary is sluggish. IT spending in the US and Europe is expected to be cut. There is no money in the IT sector for the next 6 months.
On India’s growth story, he says that India’s growth story will go on for a long time. Investors should be patient in the downside and keep building your portfolio. India’s growth story will pay off.
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