Enough ideas to invest in even when market is at record high; betting on 3 sectors: Mukul Kochhar

economictimes.indiatimes.com:

Mukul Kochhar, Head, Institutional Equities, Investec Capital Services, says: “Recommending clients to be overweight on autos and financials and are very bullish on pharma as well. We continue to find ideas and it is possible to put money at work even in this market.”

Kochhar says: “Positive both on PSU banks and private banks depending upon their story and the valuation that they are trading at.”

When you are speaking with your peers on the buy side, what is the market mood? Are they finding it difficult to locate opportunities in the market or not really? Are largecaps still providing comfort?
Mukul Kochhar: When you are putting capital at risk, it is always difficult. Moreover, last year was fairly solid, especially in the midcap side, with 58% gain. Largecaps also were fairly solid performers last year. So, we are coming off a very strong year and therefore a little bit of trepidation. But some sort of difficulty in putting money at work is very normal. But having said that, given the context of the strong last year, you are seeing this volatility. There is some nervousness hence.

To answer your question, there are enough ideas to go around. We have been recommending clients to be overweight on autos. We have been recommending clients to be overweight on financials. We are very bullish on pharma as well. So, we continue to find ideas and it is possible to put money at work even in this market.

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