IT as a sector has clearly been the bellwether, said Shibani Sircar Kurian, EVP and Head-Equity Research at Kotak Mahindra AMC.
In conversation with CNBC-TV18, she said, "Because of COVID a lot of the digital transformation journey that was expected to happen over the next five-year period has clearly been brought forward. As the COVID situation has started to improve, the deal momentum is also improving and now you are seeing larger deal flows."
"Commentary in terms of revenue going into next year seems to suggest that momentum on growth is clearly there," she added.
On portfolio call, she explained, "We clearly focus on sectors and companies which are more geared towards economic recovery which will then flow through in terms of earnings growth trajectory as well. Cement and industrials are the two key sectors where we have overweight positions. We also have overweight stance in financials, specifically the large private sector financials and insurance which will also be beneficiary of the improvement in terms of economic recovery."
"The other segment where we see economic recovery actually starting to play through is on the real estate housing front where affordability because of prices have been corrected because of regulations as well as because of lower interest rate has improved quite significantly. Therefore, housing and allied sectors which are related to housing which includes consumer electricals, home building etc. are some of the segments where we are positive on."
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