"There is one theme from last many months and that is that we like domestic India more than things exposed to the globe," says Jyotivardhan Jaipuria, Founder and Managing Director, Valentis Advisors.
In an interview with CNBC-TV18, Jaipuria talks about global commodities, defence stocks and more.
Speaking about the resilience of the Indian markets, he said that he was surprised to see how resilient the market was. "Even today the market didn't really fall as much as the Asian markets did," he said. One of the reasons he laid out for it was that the domestic economy has been doing well and it continues to do well.
"On a relative basis, probably India is the fastest growing economy in the next 3-5 years. This is helping the Indian market," he added.
But, at the same time, these global challenges are going to hurt. "We had a very stable current account deficit which will now be coming under pressure, the currency will come under pressure, the export part of the economy will start to slow down, so we need to be cautious at these levels," he added.
Talking about risks, he said that by looking at markets, one can say this is going to be the year of consolidation.
Speaking on the views of how should one approach individual stocks, he said, "There is one theme from last many months and that is that we like domestic India more than things exposed to the globe. Software, global commodities or anything export related we've been trying to avoid and we've been trying to buy more domestic oriented."
According to him, shares of banks, cement, and building materials like tiles and cables have soared. All of these will see strong domestic demand and margin improvement which will come soon.
Talking about Fed's statement yesterday he said that Powell was very clear when he said we will get a recession because he's okay with it so that it kills all inflation expectations.
"The global growth could surprise us on the downside rather than the upside. Europe is a very weak spot. Both Europe and the US could see economy starting to go down and hence we could see some pressure coming on margins, some pressure coming on topline," Jaipuria said.
Speaking of defence stocks, he said, "Defence will be a great thing for the next 4-5 years, simply because the government is committed to buying more and more from the domestic industry. We are very interested in the defence space, we are looking at it, we are buying it."
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