These sectors now deserve investor attention, says Rana Gupta
Industrials, real estate, and PSU stocks have surged between 80% and 100%, making it crucial for investors to be more selective compared to FMCG and private sector banks, which have only seen gains of around 10-20%.
Rana Gupta of Manulife Investment Management believes it is a good time for investors to look at the consumption, private banks, and state-owned companies in the areas of energy, power or banking.
“We continue to be bullish on this segment of PSUs,” he said.
The fiscal consolidation has been sharp in the last 3-4 years – from 9% to about 5.1%. However, within the consolidation, we are seeing the capex and infra push.
The revenue expenditures has also come down from 15% to about 11% and infra investments have led to a strong economic growth at 7-8%.
"We do not think there will be a U-turn because of election results but we think there will be a much better balance going forward,” he said.
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He also expects to see some welfare schemes to come back.
FMCG, he says, may be in for some good times in the coming quarters.
Industrials remain among his top pick but may require some rebalancing.
Also Read | Ed Yardeni expects no interest rate cuts from US Fed this calendar year
Industrials, real estate, and PSU stocks have surged between 80% and 100%, making it crucial for investors to be more selective compared to FMCG and private sector banks, which have only seen gains of around 10-20%.
“That kind of performance disparity, I don’t think will continue especially in the context of the new government. The sectors that have not done well- consumption, and private banks deserve a look,” he said.
Also Read | Mumbai rains: Streets flooded after heavy showers and thunderstorms; red alert in these areas
Top-tier companies in the metals space are also on his radar.
For more, watch the accompanying video
“We continue to be bullish on this segment of PSUs,” he said.
The fiscal consolidation has been sharp in the last 3-4 years – from 9% to about 5.1%. However, within the consolidation, we are seeing the capex and infra push.
The revenue expenditures has also come down from 15% to about 11% and infra investments have led to a strong economic growth at 7-8%.
"We do not think there will be a U-turn because of election results but we think there will be a much better balance going forward,” he said.
Also Read | Trade Setup for June 10: Nifty looks for new records after recovering ₹30 lakh crore in three sessions
He also expects to see some welfare schemes to come back.
Another sector that has come back to life following better than expected earnings is fast-moving consumer goods (FMCG), he noted, adding that there is under-ownership of the sector.
FMCG, he says, may be in for some good times in the coming quarters.
Industrials remain among his top pick but may require some rebalancing.
Also Read | Ed Yardeni expects no interest rate cuts from US Fed this calendar year
Industrials, real estate, and PSU stocks have surged between 80% and 100%, making it crucial for investors to be more selective compared to FMCG and private sector banks, which have only seen gains of around 10-20%.
“That kind of performance disparity, I don’t think will continue especially in the context of the new government. The sectors that have not done well- consumption, and private banks deserve a look,” he said.
Also Read | Mumbai rains: Streets flooded after heavy showers and thunderstorms; red alert in these areas
Top-tier companies in the metals space are also on his radar.
For more, watch the accompanying video
(Edited by : Shweta Mungre)
First Published: Jun 10, 2024 1:10 PM IST
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