Mishra said the brokerage is a selective in the IT space but remains overweight on the sector.
Everything might be overvalued but there are pockets of opportunities for investors, especially in sectors like information technology, pharmaceuticals, metals and petrochemical, Neelkanth Mishra, MD and India Equity Strategist, Credit Suisse, said.
Speaking to CNBC-TV18, he maintained his overweight stance on metals despite the short term concerns. “Metal stocks have corrected in the short term weighed down by concerns of global growth remaining slow for longer than expected and rise in interest rates.”
Credit Suisse downgraded some IT names last week because they appeared overbought and valuations look a bit overstretched. Commenting on the same, Mishra said the brokerage is a selective in the IT space but remains overweight on the sector.
On the recently concluded January-March quarter results, Mishra said he has cut FY19 projected earnings per share by 3.6 percent post-earnings, but expects FY19 Sensex earnings to grow at 25-26 percent.He expects India to grow at the rate of 7 percent as the micro-economic data is supportive. However, on the macro front he feels momentum in economic activity may have peaked. “There are headwinds appearing for economic growth with deposit and lending rates going up.”