Hugh Young, managing director-Asia Pacific region at Aberdeen Standard Investments believes that the market weakness is a buying opportunity and that he does not see the second wave de-railing the long-term bull run in India.
Speaking in an interview to CNBC-TV18, he said, “I do not see, certainly in the short-term, de-railing the bull run in India and there is a strong support for markets worldwide and that’s through situation such as strong economic growth, demand and also responsive governments putting money into the market.”
“Therefore, any market at the moment including India, that shows signs of weakness, remains a buying opportunity,” said Young.
Talking about IT space, he said, “We have two chunky positions about 8 percent each in Infosys and TCS and a small position in Mphasis. We are also looking at new IPOs coming in technology and related areas.”
He further said that Kotak Mahindra Bank and HDFC Bank remain as top financial holdings in India.
“The banking sector notoriously quite difficult so we have had certain bumps over the years, for example, we had bumps with ICICI. We are confident that HDFC Bank will see those through. One of the issues was valuations of some of these private banks, which is valued at a hefty premium compared to the state banks and we certainly thought they deserve the premium compared to the state banks,” said Young.
According to him, the realty sector still has a long way to run in India, but transparency has been a challenge.
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