Don’t expect valuations to be cheap anytime soon; sector rotation keeping market healthy: Abhishek Basumallick

economictimes.indiatimes.com:

Abhishek Basumallick, Founder & Chief Equity Adviser, Intelsense Capital, says IT looks to be picking up. Chemicals, look interesting, as are pharma, auto, and auto ancillaries. Basu mallick says he is fairly bullish on the Indian manufacturing theme, not only for the near future but at least for the next three to five years. India is focusing on manufacturing and we are seeing changes happening slowly. This is a definite theme. It is not going to happen overnight. The results are going to take five years, maybe even a decade to play out.

Markets are again hitting fresh highs, at least the Nifty. But given the current scenario and the valuations in the market, is it advisable to go all in?
Abhishek Basumallick: The markets have been slightly on the expensive side for a while now. Globally, other than the US, we are the only market where we are seeing strong GDP growth and strong business performance. I doubt if the Indian markets are going to get cheap anytime soon. We might see intermediate corrections once in a while and that is par for the course in a bull market. But I do not see that valuations are going to be very cheap anytime soon.

What about the broader markets? This time around, the rally that is at play in the broader markets in particular, is very different from the previous times when we saw the broader markets rally. There was a sense of panic or a sense that this rally would become a bubble going ahead. This time around, it looks like the quality of the companies has improved in the mid and the