Market veteran Kashyap Pujara of Axis Capital in an interview to CNBC-TV18 shared his views on the outlook for the market going forward and specific stocks/sectors.
He said, from a valuation perspective markets are at 17-18 times one-year forward, which seems reasonable at the aggregate but there are pockets where there is froth and there is an opportunity. So he is not averse to recommending investing in market currently, he added.
Explaining his bias towards largecap IT over midcap IT, he said the largecap IT is seeing growth uptick in Q4. The fourth quarter for them is likely to be a better than expected setting a context for strong FY19. The commentary by the management will be positive. Therefore the valuations for the largecaps are too compelling than midcaps and so would prefer to buy the largecaps.
He said the house is also upbeat on economy facing plays because they prefer capex over consumption. Prefer playing steel as proxy to India’s industrial growth versus cement.
He also explained about the concept of buying stocks where you get high IRR.