Mihir Vora, Director and CIO of Max Life Insurance, believes that 2021 could be a year for stock picking rather than taking a broad market call.
“With largecaps trading at such valuations, there is a big gap that has opened up between the top 20 and everything else. So probably this year might be more of a stock picking year rather than taking a big market call because from largecaps the returns may be limited,” he said in an interview to CNBC-TV18.
According to Vora, a lot of importance will be given to manufacturing and private sector investments.
“I think there will be a lot more importance to manufacturing, Make In India, Atmanirbhar – that broad theme. There probably will also be a lot of incentive for getting in the private sector investments, especially capex as well as real estate. So, those are some of themes that we need to watch out for,” he said.
On the IT sector, he said, “If you look at the normalized recovery, we do see that the US will bounce back much faster, even Europe, because of the sheer size of the stimulus and the fiscal deficits they are willing to run. So, to that extent, since our IT companies and many of the other exporters in general are more into US and Europe exports, we do believe that these segments will continue to do well inspite of having run up so much in the last few months.”
On the telecom sector, Vora said that they have neutral outlook on the sector. “The last couple of data points have not been that bullish but they have not been too negative either. So the theme of ARPUs gradually going up with some sanity on pricing and competition – that is something we continue to play on telecom. So, while one year back we were underweight on telecom, we are probably neutral now on the space,” he said.
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