Fund Manager Talk | Sensex @ 81,000: Time to think contrarian, sector rotation likely, says Nimesh Chandan
With the post-election and pre-Budget rally taking Sensex towards uncharted zone of 81,000 level, Nimesh Chandan, CIO, Bajaj Finserv AMC, says elevated valuation level is forcing him to think contrarian.
«Due to high valuations in certain pockets of the market, we may see some sector rotation by investors in the coming months,» says the Dalal Street veteran.
In this chat with ETMarkets, he explains what to expect from the Budget, risks for investors and view on retail-favourite PSU stocks.
How are you approaching the market ahead of the Budget? Do you think the bias towards capex, infra and PSU related themes will remain intact after July 23?
We prefer to be cautious and think contrarian considering the current levels of the market and the valuations. We believe the government is going to come out with a budget that continues to focus on capex and infrastructure development. Additionally, we expect some stimulus to the rural economy and some tax incentives to the low-income groups. This should be favourable for the consumer sector in the country.
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Overall, what are your expectations from this year's Budget as an investor?
The budget is likely to maintain its fiscal consolidation and borrowing targets, as per the announcement made in the Interim budget in February. We expect
