China-Plus-One strategy (it’s a business strategy to avoid investing only in China and diversify the business into other countries) will aid many sectors in India which is evident in exports, said Pankaj Tibrewal, senior executive vice president and fund manager-equity at Kotak Mahindra AMC, on Tuesday, adding that textile, speciality chemicals and electronics will benefit.
Speaking in an interview to CNBC-TV18, he said, “India’s mercantile export is at all-time high and that is providing a lot of impetus to sectors we have never thought about whether it textiles, speciality chemicals, electronics and some of the other sectors like engineering, capital goods etc.”
On earnings, Tiberwal said that the market got supported by strong earnings momentum and an upgrade cycle. He said, “In Q3 and Q4, though the headline numbers would look strong, the earnings upgrade cycle will take a pause.”
He further said that the real estate sector is the big elephant in the economy and all stars are getting aligned for an upcycle in space.
Kotak AMC, said Tiberwal, prefers aluminium in metals versus steel stocks.
For the entire interview, watch the video