Manufacturing sectors will benefit from Atmanirbhar Bharat & PLI scheme: Madhu Kela

We have a long bull market ahead. There may be corrections to keep the valuations healthy but these corrections should be bought, said market veteran Madhu Kela in an interview with CNBC-TV18 on November 14.

"Too many things are coming for a good market ahead. If you look at what all is done apart from liquidity, with these kinds of low-interest rates companies are benefitting," said Kela.

"What the government has done in the last six months, including the labour and agriculture reforms and PLI scheme, makes me believe that we have a long way to go for this market," he said.

Kela said he is focussing on stocks that are neglected and likely to get benefitted from recent government measures.

"I would look at more on neglected sectors, more on the manufacturing side and sectors that will benefit from the Atmanirbhar Bharat scheme and PLI scheme," Kela said.

Kela is of the view that there are a lot of themes for investment where one should choose from a bottom-up basis.

"We had not a good market for mid-cap companies for almost 3-4 years. A lot of companies are available at a very good valuation. You can find them in cement, steel, NBFC and even in pharma and IT. This is time for building portfolio, keeping 3-4 years in mind," said Kela.

Kela thinks the valuation of FMCG is rich and the sector looks fatigued. In the auto ancillary sector, there are opportunities, he said.

Kela is also positive on the Real Estate and Housing Finance sectors.

"There is a lot of value in the Real Estate sector and I would watch out this sector, including the housing finance companies," Kela said.

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