Indian equity markets are closing in on all-time highs despite several curveballs thrown at them and it makes Hiren Ved, co-founder and CIO of Alchemy Capital, ever so bullish on the India story.
In an interview to CNBC-TV18, he said, “I continue to remain constructive on markets. Despite rising rates, inflation worries, energy crisis in Europe and Ukraine-Russia war, Indian indices have been resilient. In fact, the breadth of the market is improving.”
India is in a great position structurally and markets are headed towards much higher levels as decoupling from global markets continues, he said.
“We have got the best earnings story in the last two years. Consensus is too bearish on earnings. Autos, financials and capital goods sectors will see earnings growth come through,” he added.
The market veteran is certain that there will be earnings upgrades in H2FY23 and corporate profit-to-GDP ratio will start moving towards 7 percent. It is currently at 4 percent.
When it comes to hunting opportunities in the market, he believes investors should look at the manufacturing sector. “It is bouncing back after a 10-year slumber,” Ved said
Investors can also look at some interesting stocks from speciality chemicals, defence and electric vehicle and green energy space.
“We are also bullish on the consumption theme— restaurants, QSR, travel—wherever there is premiumisation, there is a big opportunity, as incomes are rising India,” he said.Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.