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    Pick sectors carefully as inflation, macro headwinds playing spoilsport: Aberdeen

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    Pick sectors carefully as inflation, macro headwinds playing spoilsport: Aberdeen

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    In an interview with CNBC-TV18, Adrian Lim, Asian Equities - Investment Director at Aberdeen, said that it is difficult to remain bullish on all sectors in the face of macro headwinds. He mentioned that inflationary pressures are building up in India and other developing Asian markets. He is bullish on HDFC Ltd, HDFC Bank and Infosys from a medium to long-term perspective.

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    Adrian Lim, Asian Equities - Investment Director at Aberdeen, said that it is difficult to remain bullish on all sectors in the face of macro headwinds. He believes there’s a need to be selective in the market. He explained that inflationary pressures are building up in India and other developing Asian markets.
    "In this current environment, it's very difficult to be bullish about the complete market and all sectors when there are quite a few stress points for the economy over the near-term," he said.
    "I think investors need to be very careful about what they invest in here. Currently when you look at developed markets and emerging markets, there are some top down calls that are not unique to India alone, inflationary pressures are building across the region, not just in India, not just in Asian emerging markets as well, it's also emerging in Asian developed markets," he added.
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    He mentioned that in the current environment, it is difficult to read short-term movements of stocks.
    "I think in this current climate of volatility and macro news, it is very difficult to read too much into the short-term gyrations of stocks," he said.
    Lim is bullish on HDFC Bank, HDFC Ltd and Infosys from a medium to long-term perspective.
    "We still like HDFC, HDFC Bank, Infosys. These are names that you brought up for the medium-term and long-term. But it's undeniable that there'll be some periods of weakness," Lim mentioned.
    On HDFC Bank and HDFC Ltd’s merger, he explained that there will be synergies and cost advantages.
    "There are synergies and advantages in the merger of these two entities as both of these companies have been very well run for a very long time now. So it is more likely to see benefits accrue over a multi-year basis than over a quarter- to-quarter basis. But we are positive and bullish on both of these names coming together," he said.
    On the new-age platform companies, Lim believes there's a fair amount of risk involved. However, he likes Policybazaar, Info Edge and Nykaa within the space.
    "I think that for investors, these internet business models are volatile ideas, with higher risk. It doesn't mean you won't make money, but you have to be very selective about what you hold. We don't currently own Paytm shares. Within this ecosystem, we like Policybazaar, Info Edge, Nykaa; we think these are the stronger ideas within this space, but it's still not a low risk call," he said.
    Watch the video for the full interview.
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