Moneycontrol
Jul 13, 2017 12:39 PM IST | Source: CNBC-TV18

Invesco keen on bottom-up stock picking; like consumption, housing themes

More inclined towards bottom-up stock picking than looking at index or sectoral valuations, said Shekhar Sambhshivan, Investment Director, Invesco.

Most global markets including Indian equity market are seeing a good rally and are at all-time highs. The Sensex too in the morning trade went past 32000. So the question is how should investors now position themselves – should they chase prices or wait for big corrections.

Shekhar Sambhshivan, Investment Director, Invesco says if one were to look at the markets world over there are two clear trends - one is that yields have come down meaningfully and two, economic activity is reasonably anemic.

Therefore, most of the pension funds, mutual funds, provident funds are trying to chase yields or economies where growth is sustainable and reasonably good, says Sambhshivan.

According to him, money is moving into economies where equity markets are likely to do well.

With regards to Indian markets, he says no doubt the valuations are high if compared historically but the fund house is more inclined towards bottom-up stock picking than looking at index or sectoral valuations.

The house is bullish and optimistic on the consumption space and within that financial inclusion story looks good, says Sambhshivan.

Implication of goods and services tax (GST) and value migration from unroganised to organised – so that theme looks good, he says., adding that government's new thrust on affordable housing and housing for all by 2022 will spur demand.

Moreover, with the government's new thrust on affordable housing and housing for all by 2022, demand is likely to go up and so housing space also looks good.

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