Continuing with his bullish stance on the Indian equity market Anish Damania, Ceo & Head - Institutional Equities, IDFC Securities has a Nifty target of 9825 in FY18.
He believes the current correction seen in the market is a routing one. The market is reacting to the correction seen in all global markets yesterday. Moreover, since the post demonetisation lows of 7900, the market has been up 12-13 percent on a trot, says Damania.
For the past seven years investors were upbeat on spaces and companies that were asset light but now the tide is turning for asset-heavy companies, says Damania, adding that one can now see more value in them.
So, on a portfolio basis, the house is upbeat on asset-heavy businesses in export space. They also like Adani Ports Transmission, Larsen, Oil and gas companies – both upstream and downstream.
The house he says is overweight on pharma space, especially the good companies like Sun Pharma that are currently trading at half their peak levels. According to him, most of the problems faced by them currently will be on its path towards resolution in a year.
Also, the observations by FDA will fall relatively and companies will get clearances for their facilities in a year’s time.
Damania sees immense value in the non-ferrous metal space. Hindalco is their top buy in the space.
For the entire discussion, watch video
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