ETMarkets Fund Manager Talk-Why is this portfolio manager betting big on banks, healthcare, IT sectors?

economictimes.indiatimes.com:

Portfolio’s key multicap strategies have consistently given index-beating returns across time horizons, and the key sectors leading this performance are banking, healthcare, IT, and capital goods. Asked about the rationale for the high exposure to these sectors, Achin Goel, VP — Wealth Management and Institutional, at the firm, said, “These sectors will benefit from a robust growth story of India from the perspective of government initiatives, PLI schemes, infrastructure plans and the fundamental progress that we are witnessing throughout the nation.” Goel sees immense opportunities in the sectors in the long-term and believes that the portfolio results will be a reflection of the growth. Edited excerpts from an interview with ETMarkets:Benchmark indices have rallied close to 16% in 5 months. How comfortable are you with the current valuations?Before answering this question, let us run through a few macro data points.

The GDP growth of India has been stable at around 6% for the last year despite various global headwinds. We have seen increasing GST collection in the past year, which is an indication of the economy hiking up the growth hill. Additionally, the purchasing manager’s index has been hovering at 55 levels on an average.

The economic growth in India, which is growing at the fastest rate, provides a tailwind for Indian businesses and is leading to higher earnings and valuations for stocks. This gives a sense of immense dynamism in the markets. Despite the rally, we believe that the markets are rightly valued, with headroom for more upside.