S Krishnakumar on why he would not touch largecap banks, would rather go for new age sectors

economictimes.indiatimes.com:

S Krishnakumar, Director, Lion Hill Capital, says “water, capex and water chemicals are big areas where there is a huge amount of growth that is kind of coming through. In addition to that, if you look at the green energy transition, people talk about hydrogen etc. A lot of global companies in India have their foot into those areas and we should look at some of the Indian listed entities of global MSEs. Valuations are a little steep because we are factoring in a lot of the next decade and less of the current numbers which are not as good as supportive valuations. So, one should definitely look at good entry points to get into some of these new trends.”

We are seeing the US 10-year bond yield retreat to 4.8%. We are seeing positive global cues, but we are also seeing the Indian index in retreat mode. How should one look at it?
In the near term definitely the global construct is not positive. Definitely, rising tensions in the Middle East is creating a lot of uncertainty on how this could go in the next one or two months. Also, the US 10-year has been moving up and hitting a 10-5% and above kind of a mark, bringing into focus the kind of stiff interstates kind of ahead of us for the next six to six months and more.

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So, with this kind of a situation, one would need to be a little bit cautious in the near term. However, the valuations, which were quite stiff some time back when we were closer to 20,000 in Nifty, are now a lot more comfortable within long-term averages, at about