ETMarkets Fund Manager Talk-This fund manager sees value in 3 sectors as domestic growth prospects strong

economictimes.indiatimes.com:

MUMBAI — Even after 18 months of correction phase, Indian markets remain highly valued compared to other markets globally. However, there are a few pockets that offer value to investors, believes Siddhartha Bhaiya, managing director and fund manager, Aequitas Investment Consultancy. “There are certain sectors that have just experienced an inflexion point after a long period of headwinds where growth may continue going forward.

We still see value in sectors such as capital goods, automobiles, railways etc,” Bhaiya said in an interview to ETMarkets. Edited excerpts:The Sensex has scaled lifetime high and FII inflows remain strong. Would you say India is in the initial stage of a strong bull market phase?Sensex bottomed in the first half of 2020 and index has gained over 2x from there, so India is definitely enjoying the bull market.

It’s been over 3 years of rising markets, so we are not sure about these being initial stages of a bull market. Having said that, fundamentally speaking, the Indian economy today is in a phase where it is reaping benefits of stable and growth-oriented policy focus, proactive monetary policy and assertive geo-political stance. This, coupled with positive sentiments and strong flows from both domestic as well as foreign investors augur well for Indian capital markets.How comfortable are you from a valuation perspective, be it large, mid- or smallcaps?Indian markets, holistically speaking are quite highly valued relative to other markets globally.