Global institutional investors are talking about India as distinct from the emerging markets basket, says Anil Sarin, CIO-Equities, Centrum Wealth. Pointing out that this was a very positive trend, the noted fund manager says that India represents a good alternative to China for global investors.
“The relative decline of China where investors have some internal issues, as well as some geopolitical development, is making investments in China less attractive now,” Sarin said in an exclusive conversation with Udayan Mukherjee, Global Business Editor, Business Today TV.
Sarin is betting on different themes, including capital goods, commercial vehicles, logistics, healthcare, and real estate. Talking about different themes, he said that bank lending is doing quite well.
“Within the BFSI space, we like lenders more than asset managers or insurance companies. So, lending is one theme, and the other theme is the return of commercial vehicles. I mean, commercial vehicles have a four to five-year cycle. And, we think that the next cycle, the upcycle has just recently begun. So, that could be another theme that we are trying to play through the stocks which benefit from CVs, namely trucks that have started doing well. Another theme that we are focusing on now is logistics.”
The market veteran is also optimistic about the healthcare sector. Diagnostic as well as hospitals are benefiting from the growth of health insurance which is growing very fast, he added.
Sarin is also positive about capital goods as well as the real estate sector. “Capital goods have a characteristic that on a headline basis the valuations appear to be forbidding. So, you need to think through it. I mean, are you fully geared in terms of what potential is there for your revenue to rise, is it expensive in relation to that future revenue potential, or is it appearing to be optically expensive because right now it's only ordered books that are rising and revenues have yet to show the full extent of the rise,” he asked.
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