Mihir Vora, Chief Investment Officer, TRUST Mutual Fund. In an interview with Mint, Vora shared his views on markets and the sectors he is positive about. Edited excerpts: We’ve had a dream run in the markets over the past eight years.
Since the inception of the Sensex in 1979, the longest run of back-to-back positive years has been seven years – from 1988 to 1994. In 2023, we are in the eighth year of positive returns. So, if we end the year at current levels, it will be a new record streak.
In the very short term, we will continue to see volatility, mostly due to global factors but local corporates are doing well, with 15-20 per cent earnings growth. With the recent downtick in US bond yields, if the market sees the peak of tightening past us, then there could be a year-end risk-on rally. December usually tends to be quiet as most international fund managers will be on a break.
Some mid and small-cap stocks may have run a bit too far, but that need not mean that the whole segment is expensive as within mid-caps and small-caps there are significant variations in valuations. Mid-cap and small-cap space will always be a stock pickers’ playground. This is because most of the exciting sectors where we expect high growth are represented only in the mid and small space.
Sectors and sub-sectors like capital goods, defence, railways capex, electronics and durable manufacturing, construction, renewable power, power transmission and distribution, China-plus-one theme play, beneficiaries of the production-linked schemes, chemical and pharma companies, etc., are mostly represented only in the mid and small-cap space. We can expect more support for the lower-income segments in the next few months. It may be populistic but is
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