Sorbh Gupta , Senior Fund Manager-Equities, Bajaj Finserv AMC , says he has a positive outlook on consumption trends, as companies in this sector are attractively valued compared to their historical levels and the broader market. He expects a cyclical improvement in consumption, which should benefit these companies and lead to earnings upgrades. Additionally, he maintains a strong positive view on the pharmaceutical industry, including CDMOs, U.S. generics, and domestic pharmaceuticals, and are positioned overweight in this sector.
Markets have been quite volatile in the last couple of months. We have seen a sharp drop of 3,000 points from there. We have seen a recovery of at least half of those losses that we had seen. So, how are you positioning yourself in such kind of volatility and which are those sectors or those pockets where you are finding value amid such volatile markets?
Sorbh Gupta: Equity markets generally are a combination of two things. One is the reality and the second is the expectation. Reality on the margin seems to be changing a bit because of bad GDP growth numbers, lesser than expected, and also one has to look at whether the two largest economies in the world on the margin have started to do better or the expectations are that they will do better. That also complicated some situations to understand the markets.
This is coming on the back of very elevated expectations from equity returns, which we have seen in, one, one-and-a-half years. So, all these things put together are bringing in volatility in equity markets. However, what we feel is that this rough patch should not sustain in terms of the bad GDP growth print that we saw, and should improve from here on. But from a positioning perspective, we clearly see a lot of value in the
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