Don’t know how sustainable are the price rises in chemicals: Deepak Shenoy

economictimes.indiatimes.com:

Deepak Shenoy, Founder, Capital Mind, says: “We have just been adding very little churn these days. Markets have been kind. But I am looking forward to a couple of more sectors. There seems to be a turnaround in textiles. There seems to be something happening, early stages happening in chemicals so looking forward to some of that. We may end up replacing some of our stocks if we see a three to five-year trend.”

What has been your last purchase in this market and where are you looking at exiting completely because you think the valuation or the template is now shaky?
We generally do not get out on just valuation alone; the business has to have some kind of a negative trigger going forward.

We have just pared down at this point because certain stocks have run up a little bit and they have breached our upper levels of percentage ownership. But right now, we have not exited much. To be honest, we have added a few players; we are still buying them so I am not going to name a lot.
We are doing something in the digital entertainment space.

Actually, we have added a lot more in terms of both public sector and private sector players in the electronic manufacturing space. We have added some players in defence and rail spaces. The idea here is, of course, that India's move to import substitution will benefit these companies disproportionately.

In the process, in the last few months, the only exit that I have really had is Siemens, because of some corporate governance issue which we were not very fond of. Of course, that is now behind us because they have cancelled the sale of a unit to their promoter. But once you have told us what the intention is, it is not easy for us to go back in there and say, well, it will be okay the next