The Indian equity markets are currently trading at record highs but valuations appear to be stretched. So what should be the strategy of investors? Is it advisable to deploy money at current levels?
Devam Modi, Director, Equirus Securities believes the India story will continue for the next ten years but one will have to be selective.
The house has contra bets on the roads and construction space, asset ownerships, as well as IT.
From a sector perspective, they would look at spaces where there is the potential of return on equity capital (RoEC) expansion incrementally. So spaces like power transmission value chains (metering or cable companies), export linked models look good, says Modi.
One could also look at financials which have seen asset quality turnaround story priced-in.
Although the valuations in FMCG space look stretched, the house is upbeat on Britannia and P&G Hygiene.
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