Stay invested in HUL, Asian Paints: Nitin Raheja

Nitin Raheja, CIO, Rada Advisors advice traders to stay invested in HUL and Asian Paints.

Raheja told CNBC-TV18, “Our own preference has been for the mid caps IT. The mid caps have had a huge valuation difference as far as the large caps is concerned. Their performance if you see this quarter has been excellent whether you take a Hexaware or MindTree, KPIT Cummin and so and so forth and we see that valuation gap narrowing.”
He further added, “A lot of them because of the kind of focus that they have developed on certain domains have actually built core competence and are seeing good traction as far as their numbers are concerned. On an average we see these mid caps having growths anywhere between 18-20% in the year going ahead. So, our own preference lies with some of the midcap names.”
“One should stay invested in HUL and Asian Paints companies primarily because there is a lot of uncertainty that is at this moment around. So, you need to have a strategy, which we believe is a mix of playing pure bottom-up high conviction ideas mixed with defensives as far as your portfolio construction is concerned.”