Indian market will continue to go up despite the negative global cues, said Atul Suri, CEO of Marathon Trends PMS. In a conversation with CNBC-TV18, Suri said he is also overweight on midcap IT space and NBFCs due to niche consumer base and focus on technology of the former and price and earnings growth in the latter.
Suri said despite all the negative global cues like the Russia-Ukraine war, the Gaza conflict, rising oil prices and US bond yields, the markets are pushing higher.
“From an all-time high, we saw a correction of 4 percent off which we have already recovered 2 percent. Where is the scope of being bearish in this market?” Suri said.
He said that his portfolio doesn’t own much of large private sector banks and his fund is overweight on NBFCs. He reasoned: “The dynamics of the industry are changing. There is a lot happening in terms of digital payment. The action will be in the NBFC space because of their niche work and heavier involvement of technology and that’s where there is consumer attraction”.
Companies like Cholamandalam Investment and Shriram Finance have delivered returns between 36 and 70 percent year to date.
Currently, Suri is overweight on the midcap IT stocks. “Because I’m a trend follower, I look at two things. Strength in earnings and strength in price. Midcap IT spaces are delivering fantastic numbers and it is reflected in the price,” he added.
Stock prices of midcap IT companies including Coforge and Persistent Systems have risen 29 percent and 43 percent YTD.
Among the trends that are playing out in the market, Suri believes Infra and capital goods sectors have opportunities for further upside. “These sectors haven’t moved in the last decade and these sectors were under-owned and under-represented. Whenever the industrial cycle turns, these companies are going to be disproportionate beneficiaries,” Suri added.
Suri also said the buoyancy in India has been made possible by stability in political policies. He added that any change in political policies due to elections coming up could act as a speed breaker for the market.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.
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