Looking for hidden gems? Look into these 3 sectors: Anshul Saigal

economictimes.indiatimes.com:

Anshul Saigal, Founder, Saigal Capital, says “one should really focus on bottom-up opportunities, not worry about the market levels, market direction. As long as we have got good companies at reasonable valuations in our portfolios, over the long term, we will be very well-placed. And there is a lot of money to be made in India.”
Saigal also says: “We believe that, small banks, PSU banks, that is one space where value unlocking is yet ahead of us. Pharma, which has seen multi-year consolidation is coming out of that consolidation phase. We are quite positive on pharma. Then metals and minerals has seen a significant consolidation and adverse price action. This may look interesting going forward.”

Market is at highs. People are looking for undervalued ideas. A section of the market on the consumption side, especially rural tier 2, tier 3 towns, QSR, FMCG as well as some other consumer categories – have underperformed because of inflation. Now that the inflation trajectory has peaked out, can this under-owned part of the market make a comeback? Also what categories would you bet on?
Anshul Saigal: Yes, you are absolutely right that this is a market where it is no longer as easy as it was last year to identify opportunities.

Clearly, a lot of the market has rallied quite meaningfully. And what we are witnessing in this market is quite severe sector rotation. While 2021 was the year of IT, for the next two years, IT underperformed and only of late has the IT sector started rebounding.