Rahul Singh, CIO-Equities, Tata Mutual Fund believes the recovery in the economy has been much stronger than most people had expected it to be.
“If the economy revives and the credit growth comes back - even if it is high single digits, the provisioning has been very high and now even PSU banks are raising capital, so clearly from a capital availability and the provisioning point of view, banking is one sector where one can still see that recovery is not fully factored in,” he said in an interview with CNBC-TV18.
According to him, various segments in auto sector are behaving differently. “In two-wheeler, we saw a lot of inventory build-up and the demand subsequently is not as strong as we see it in cars and tractors. At these levels of valuations one has to make a distinction between different sectors of autos. The demand continue to be strong in certain pockets, it doesn’t seem like it was only pent-up demand which was the early fear. So to that extent, the demand is pretty solid in some of the pockets which I mentioned in autos,” Singh said.
“It is very important that even within the sectors you find relative value. It is very easy to do a broad-brush between value and growth but end of the day, it comes down to bottom-up stock picking, which is what we have to constantly try and do that,” he said.
For entire discussion, watch video...