Services export boom is most unheralded story of India in last five years: S Naren
«The services export boom of India is the most unheralded story of India in the last five years and it is talked about very little and that has not just come through these IT companies, it has come out of the GCCs which are there and I think without Indian GCCs, which are the global competence centres of the multinationals operating in the world, I think all the top 500 companies of the world are today dependent on Indian global competence centres for them to run,» says S Naren, ED & CIO, ICICI Prudential AMC.
The market always gives you pockets of excitement, pockets of despair. And I can see some pockets of despair. One is IT. To some extent, you could say underperformance in private banks. Are these two sectors getting ready now to start outperforming, whether it is largecap IT or largecap private banks?
Certainly, I would say private banks is an area which appears to be at fair value. So, if you look at the funds that I run directly, like Value Discovery, for example, I have never had a situation in Value Discovery where private banks are such a big part of my portfolio.
Even in my special situation investing, I have never had a situation in the last five years that private banks turned out to be such a big part of the portfolio. So, clearly private banks is one of the few things where in a framework point of view, it became fair value at this point of time. The challenge in IT is that the hawks are not trading at below the valuations they were trading in 2017-18. They are trading at a premium to 2017-18. The
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