IT, Pharma and Chemicals poised to benefit from weakening rupee: Varun Goel
Chemical sector again has been undergoing a downturn for almost three years and we expect demand to start recovering. So, broadly, as far as the exporters are concerned, we should be okay," says Varun Goel, Mirae Asset Investment Managers.
What do you make of the market set up right now? Is it time to buy after the correction, especially in the broader markets or do you anticipate more pain?
Varun Goel: If you look at the markets, we have corrected roughly 10% to 15% from the top that we saw in the month of September. If you look at the time duration also, last year in January, February, markets were at similar levels. So, we spent a year trading sideways with a good 10-15% correction. If we look at FY26 valuations, if we look at 1200 rupees EPS for Nifty 50, we are trading at around 19 times, which is let us say 5-7% more expensive than what is the 10-year average.
So, we have already seen a significant correction. Can there be another 5-7% correction? It is possible, but very difficult to time. So, it is a good time to start deploying your money, start putting money to work and in the first few months of this calendar, we are getting that opportunity to create a good medium to long term portfolio.
So, further correction cannot be ruled out at this point in time, but where will you start deploying your money? Any sectors that are looking decently well-placed and attractive to you at this price point?
Varun Goel: Yes, I think broadly we see the rupee depreciation is a big comforting factor for several exporters.
