"There is an attempt to realign portfolios in favour of infrastructure, rate-sensitive companies that more dependent on economic recovery," Taher Badshah of Motilal Oswal AMC told CNBC-TV18
The market has been rather volatile in the run up to the Budget. But despite that Taher Badshah of Motilal Oswal AMC advises investors to buy into every correction. From the point of view of the Budget, there is this expectation that it will be a path-breaking one, he says.
But according to him, if finance minister Arun Jaitley just keeps to some of the ideas that he had initiated in July – whether it is the ‘Make in India’ campaign or smart cities or on the personal taxation front and provide more teeth to these programmes – it should be good enough. It will be well accepted by the market, especially if it is accompanied with correcting fiscal imbalances.
Even prior to the run up to the Budget, Motilal Oswal AMC had positions in the industrial space, especially logistics. It is currently happy to add on to the space. Badshah says the company built into these positions over the last one month as well. “There is an attempt to realign portfolios in favour of infrastructure, rate-sensitive companies that more dependent on economic recovery,” he told CNBC-TV18.
He has also identified opportunities in IT and pharma as these won’t be impacted by the Budget. But he is not betting on defensives and neither are these buys from a sectoral perspective.
Motilal Oswal AMC, however, doesn’t have any pure plays in the defence sector. But its portfolio includes companies with embedded defence exposure. Badshah believes it is the right way to deal with the sector.