Mihir Vora, senior director and CIO of Max Life Insurance, believes that the foreign investment into Indian equities will grow as the inflows are more pro-India than anti-China.
In an interview to CNBC TV-18, Vora explained his disinclination towards the Indian IT services sector and also why the FMCG sector may outperform. Edited excerpts:
Will India's advantage as a plus one exist if China continues reopening?
This can be one concern but structurally it won't alter the investors' long-term view of the Chinese political landscape. The flow we are seeing is pro-India flow and not anti-China flow. Incremental exposure to India will increase in the FIIs portfolio.
Your view on the Indian IT sector for the next year...
I'm not very bullish on IT services due to slowing growth in the space. Domestic companies focus on local demand and look more attractive as compared to their IT sector peers.
Your views on the auto sector?
Both commercial vehicles and passenger cars will continue to do well. There is under-penetration in the auto sector.
If rural demand picks up, we may see another leg-up for the auto sector.
Did you participate in the PSU bank rally recently?
In our large cap and diversified fund, we have stuck to the two-three names in the PSU space. Most of the exposure in the PSU space is via defence and select banks.
Any interesting ideas you are exploring?
One segment which is underweight across the board is FMCG due to reasons like muted rural demand and higher input prices.
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