Retail investors should be opportunistic in new-age tech companies and build positions according to their comfort, said Rahul Chadha, chief investment officer, Mirae Asset Global Investments.
In an interview with CNBC-TV18 on November 22, Chadha said IT stocks were a good hedge against a depreciating rupee and ballooning trade deficit. Edited excerpts:
Where are the markets heading?
We have been cautious about the markets for the last six-nine months. India has done well by not falling against other economies, which fell sharply. In dollar terms, markets are about 7 percent. Markets will be range bound for another six months.
The PSU banking space has had a phenomenal rally this year, is it too late to enter this space?
Banks continue to remain the first choice for FIIs (foreign institutional investors). PSU banks have given good results. Some banks were underperforming for the past 10 years. There is obviously pent-up demand.
What about new-age companies?
The theme is pretty exciting, prices are not. It's a buyers' market. People should be opportunistic in these companies and build positions one is comfortable with.
Infra stocks have not performed in past few years. Do you see a change in the cycle?
The stock prices are saying so. If you look at the recent performance of stocks in this space, they are trading at record-high multiples.
There is no broad-based pickup in the private market cycle capex. If that happens, the infra cycle can be a multi-year cycle.
Is there any good investment opportunity in the IT space?
IT space is a good hiding place for investors. Hiding place means if one is worried about a depreciating rupee, ballooning trade deficit, etc. These are good hedges.
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