Investors are currently in wait and watch mode ahead of Lok Sabha election results, said Invesco MF's Taher Badshah.
Crude oil prices and US-China trade tensions are likely to keep Indian markets volatile, said Taher Badshah, chief investment officer, Invesco Mutual Fund, adding that the investors are currently in wait and watch mode ahead of Lok Sabha election results.
Sector-wise, he said in terms of valuations some of the FMCG companies are not different from where they were three to six months again, although they could have gone through time correction. The earnings showed that there is some kind of slowdown but volume growth seems to be decent in the current environment, said Badshah in an interview with CNBC-TV18.
Improvement in the rural economy remains a story that will play out and expectation of decent monsoon should bode well for some of the FMCG companies, he said.
The house continues to have exposure to auto companies and does not think the industry is a right off yet. "We know the sector is challenged for a while and could be a couple of quarters before things stabilise. However, valuations are expected to come to a reasonable level," he said.
For cement, he said pricing would be an important lever going forward to justify bets in the sector or overcome the valuation challenge. The situation for them seems to be getting a bit better that two quarters ago, he said, adding that they would focus on how the demand supply outlook for the space pans out.Source: CNBC-TV18