According to Dongre, high-quality names will continue to trade at high valuations due to higher growth.
Sanjay Dongre, EVP and senior equity fund manager at UTI Mutual Fund, shared his views on the fundamentals of the markets and also spoke about specific stocks and sectors.
According to Dongre, most of the high-frequency indicators are pointing towards a slowdown in the economy, particularly in consumption.
"However, there are other sectors which are doing well in terms of earnings growth. For example, if you look at FY20 earnings growth, the expectation is that the Nifty earnings growth will be somewhere in the high teens because a large part of the contribution is going to come from the banking sector,” said Dongre.
“There could be a set of sectors like banking, cement, capital goods, or construction which could show good growth in the earnings going forward,” Dongre said.
According to Dongre, high-quality names will continue to trade at high valuations due to higher growth. “Wherever the growth is present, valuations have turned expensive. However, unless the growth becomes broad-based, I think quality names will continue to trade at higher valuations.”Source: CNBC-TV 18Subscribe to Moneycontrol Pro and gain access to curated markets data, trading recommendations, equity analysis, investment ideas, insights from market gurus and much more. Get Moneycontrol PRO for 1 year at price of 3 months at 289. Use code FREEDOM.