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S Krishna Kumar, CIO Equity, Sundaram Mutual Fund told CNBC-TV18, "I think over the next couple of years, we do believe that the story in India would be more domestic led. The overseas businesses are going to be facing some amount of headwinds and so we do believe that the domestic consumer discretionary story is going to be a very strong play and auto ancillaries are a clear play on the auto space in the consumer discretionary area and we have seen the first half showing fairly strong growth from two wheelers and tractors and cars and recovery in the light commercial vehicles (LCV) also."
"We do believe that this space will continue to do well along with things like building materials, cement which will also see significant traction as the economy gathers more steam in the second half. The seventh pay commission and also the rural income is getting better in the second half post a favourable harvest are going to have their impact on demand."
"The consumer finance story continues to be and the retail NBFCs continues to be an area of high interest for us. We clearly see that these are companies run efficiently by promoters and professionals with a fair degree of control on spreads, control on the NPLs and the book and significantly clean provisioning done already."
"We have situations where return on assets (RoAs) are upwards of 3 percent, return on equities (RoEs) are in the range of 20-25 percent and growth visibility is in the range of 20-22 percent. So, this makes it a very confident exposure for many of us in our fund house. So, we do continue to believe that financials space, NBFC, and private banks would continue to be major portion of our assets."
"On the chemical side, it is a mix of chemicals and agro chemicals, specialty chemicals. I think we believe that there is a strong trend towards outsourcing in specialty chemicals and agro-chemicals towards India."
"I think China has been going through a phase of capacity closures and we are seeing European and American companies look forward towards Indian companies to be the supply chain in many of these specialty chemicals and hence visible growth opportunities are quite high here. Good margins, good asset turns and visible growth provide comfort to an asset manager. So, we remain positive in this space," he added.