ETMarkets Smart Talk- Investors should focus on underperforming sectors such as textiles, metals, chemicals, paper: Harjeet Singh Arora
“There is no reason to stop investing; rather investors should focus on the sectors that are underperforming such as textiles, metals, chemicals, paper, cement, etc.,” says Harjeet Singh Arora, Managing Director, Mastertrust. In an interview with ETMarkets, Arora said: “One should focus on the margin of safety, avoid companies with high PE ratios (without good fundamentals), look for sectors to invest which has witnessed sharp correction due to downturn in the business cycle” Edited excerpts: The market seems to be consolidating after hitting record highs. What is your take on markets? As the market hits a lifetime high, investors should remain cautious and focus on fundamentally strong companies.
Investors can reduce positions/exit from the weak stocks but should stay invested in quality stocks for the long term and use corrections to add more. We believe markets to remain range bound as they will take cues from the US Fed policies, geo-political happening and Indian macro developments i.e., high inflationary pressures.
It will be more of a bottom-up approach one should follow for the rest of 2023.What is your take on RBI rate action? RBI Monetary Policy left the repo rate unchanged at 6.5%. Though going forward RBI remains committed to withdrawal of accommodation.
RBI raised some concerns on the inflation front due to uneven monsoon in some parts of the country which has led to an increase in vegetable prices. The decision of incremental CRR of 10% for banks is to absorb the excess liquidity from the system following the withdrawal of Rs 2000 currency notes.
We expect a recovery in rural demand led by strong fertilisers demand, tractor sales and high growth in agriculture credit. Industrial activity continued to
. Read more on economictimes.indiatimes.com
