Anish Tawakley of ICICI Prudential Mutual Fund bets on these three sectors; here’s why
Says the economy is well positioned for a cyclical recovery led by house building
- Sep 4, 2023,
- Updated Sep 4, 2023 6:51 PM IST
While maintaining a neutral view on the domestic equity market in the near term, Anish Tawakley, Deputy CIO Equity and Head of Research, ICICI Prudential Mutual Fund, said capital goods, automotive and insurance sectors may deliver solid returns to investors going ahead. He believes that the capital goods sector is likely to see higher earnings growth, while the auto sector may see earnings expansion. Sharing his views on the insurance sector, Tawakley added that the role of financial intermediaries will improve in an economic upcycle.
On the other hand, the fund manager is bearish on metals, banks and FMCG sectors. “We expect the metal sector may continue to face some pressure as China demand and commodity prices remain soft,” Tawakley said. The benchmark equity index BSE Sensex has gained 11 per cent so far in the ongoing financial year till September 4.
Tawakley believes that any credit problem in unsecured personal loans, fiscal profligacy and supply disruptions in global oil or energy markets may weigh sentiment. On the other hand, any pickup in homebuilding activity, corporate capex and dip in oil price may take markets to new highs going ahead.
Commenting on the broader markets, the fund manager said, “The economy is well positioned for a cyclical recovery led by house building. On a valuation basis, however, the markets are not cheap. In particular, there is froth building in mid- and small-caps.”
Tawakley is positive on the markets for the medium to long-term period. He expects capital spending-both house building and consequently corporate capex-to pick up. “We expect home-building activity to pick up and create a virtuous cycle. Home building creates employment and it consequently creates demand for manufactured goods. As demand picks up corporate capex will also pick up,” he said.
While maintaining a neutral view on the domestic equity market in the near term, Anish Tawakley, Deputy CIO Equity and Head of Research, ICICI Prudential Mutual Fund, said capital goods, automotive and insurance sectors may deliver solid returns to investors going ahead. He believes that the capital goods sector is likely to see higher earnings growth, while the auto sector may see earnings expansion. Sharing his views on the insurance sector, Tawakley added that the role of financial intermediaries will improve in an economic upcycle.
On the other hand, the fund manager is bearish on metals, banks and FMCG sectors. “We expect the metal sector may continue to face some pressure as China demand and commodity prices remain soft,” Tawakley said. The benchmark equity index BSE Sensex has gained 11 per cent so far in the ongoing financial year till September 4.
Tawakley believes that any credit problem in unsecured personal loans, fiscal profligacy and supply disruptions in global oil or energy markets may weigh sentiment. On the other hand, any pickup in homebuilding activity, corporate capex and dip in oil price may take markets to new highs going ahead.
Commenting on the broader markets, the fund manager said, “The economy is well positioned for a cyclical recovery led by house building. On a valuation basis, however, the markets are not cheap. In particular, there is froth building in mid- and small-caps.”
Tawakley is positive on the markets for the medium to long-term period. He expects capital spending-both house building and consequently corporate capex-to pick up. “We expect home-building activity to pick up and create a virtuous cycle. Home building creates employment and it consequently creates demand for manufactured goods. As demand picks up corporate capex will also pick up,” he said.