Vinay Paharia on 4 sectors that may provide good opportunities for solid returns

economictimes.indiatimes.com:

«There will always be some slowdown or pickup in the economy, but I do not envisage a material and a broad-based general slowdown from a pure macro perspective,» says Vinay Paharia, CIO, PGIM India Mutual Fund.

There is a sense in the market that maybe some amount of fatigue maybe actually coming in with all triggers playing out and there is, in fact, some concern that first quarter numbers may actually not be that great. Is that a legitimate concern?
Vinay Paharia: You will have to look at concerns from a different angle. From a broad macroeconomic perspective, we are clearly cruising at high speed. There will always be some slowdown or pickup in the economy, but I do not envisage a material and a broad-based general slowdown from a pure macro perspective.

Economic momentum, we do not have any issue. What about valuations? Are they kind of fairly priced right now?

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Vinay Paharia: Yes, so, purely from a valuation perspective the way we look at market is through the lens of three buckets and these buckets are companies which are low quality and low growth, companies which are either low quality or low growth, and companies which are high quality and which are high growth.
Now, in the last one year, we have seen a huge outperformance of companies in the low quality and low