Kotak MF bearish on IT, NBFC space; bets on staples, discretionary themes amid mkt consolidation

The market pullback in the last few sessions may not last long. That is the message emanating from Kotak Mutual Fund, which believes this will be a year of consolidation for the market.

Harsha Upadhyaya, CIO-Equity, Kotak Mutual Fund told CNBC-TV18 in an interview that the corporate world too will have to face issues of higher raw material cost.

On a sectoral basis, he is still underweight on IT  despite the recent run up. "BFSI, its biggest revenue contributor, still continues to be an issue. Meanwhile, its sub-segment, midcap IT does have issues of high valuations." He also remains skeptical about growth in the NBFC space.

Consumption stocks have been buzzing of late on the back of normal monsoon forecasts, which will boost rural and urban demand. Upadhyaya sees rural India participating in this growth story. As a result, he is betting on staples and discretionary.