Taher Badshah, chief investment officer–equities at Invesco Mutual Fund, on Wednesday, said that the real estate cycle is good for India.
“A good real estate cycle is always good for the country. However, we have not been able to find vehicles that are appropriate to us in this space; it's not to say that we cannot participate in the ecosystem around it. We have tried to figure out companies, which are also indirect beneficiaries of the same and tried to position ourselves in those and they have worked out reasonably well for us. So that's how we are taking it. As of now, we don’t have direct exposure to any of the real estate companies,” Badshah said, in an interview to CNBC-TV18.
He further said that they have added cement and household-focused stocks to their portfolio.
On auto space, he said, “Auto is a bit of a difficult space. As part of the overall consumer discretionary space, maybe there is a little more challenge at this stage, but within the auto ecosystem, we have more inclination towards some of the ancillaries; particularly ancillaries which are relatively less likely to get disrupted.”
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According to him, diagnostics is an interesting space and they are looking for players that can transition from regional to larger players. “It’s going to be an interesting space, but we are selective. We are trying to see where we can put our money to work best,” said Badshah.
He also believes that IT is a good sector to be in, but there is a cost catch-up. He further mentioned that topline growth in the IT sector is mostly discounted now.
For an entire interview, watch the video