Buy ITC on dips, infra a long-term play, says Aberdeen

Hugh Young, Managing Director, Aberdeen Asset Management Asia is keen on investing into India as he is of the view that the markets here have the potential to do better than the current levels. Speaking to CNBC-TV18, he said the passage of the Goods and Services Tax (GST) is a welcome boost to the group's thesis. Calling the move to be an 'enabling resolution', he said it will make the business environment better.Aberdeen Asset Management Asia, based in Singapore since 1992, is the main regional investment arm of the Aberdeen Group. The Group has been investing in Asia for over 25 years, where its assets under management are total over USD 76.1 billion.He believes GST will largely affect the broad market in general and not specific companies. Hence, the firm will not change it's stock selection. However, he considers India valuations to be a little high. Young said: "Quality financials in India are far from cheap and India portfolio comprises mostly large caps."Young said he has always believed in the country's long-term infrastructure tale and that the firm is playing India's infra story via cement stocks.Talking on Aberdeen's holding, he said the portfolio consists of Asian Paints and other paint stocks. In addition, he recommends buying ITC on dips as he is positive on the company from the long-term perspective."IT sector has been a part of our large dedicated India holding for many years now and both Infosys and TCS are good companies with tremendous potential," Young said.In auto sector, he said Hero has been the Aberdeen's long-standing two-wheeler stock and it has been investing in Hero since 1990s. The firm will continue to hold a significant chunk of the same, he added. For entire interview, watch videos...