Some gold loan companies could benefit due to higher inflation, said Arvind Sanger, managing partner at Geosphere Capital Management, on Friday.
Speaking in an interview with CNBC-TV18, he said, “Commodity producers will benefit and maybe some of the gold loan companies too. Housing lenders could be beneficiaries, ethanol too if oil is going higher and if the government has made a big commitment to ethanol. I think that is not going to go away in terms of importance where sugar stocks are related entities for ethanol.”
“From inflationary standpoint, when I look at markets like India, where inflation has a lot of things driven by, things like fuel feeding through to food feeding through a lot of other things, I am a bit nervous and I am looking for companies that will give me inflation protection in the coming quarters,” he said.
According to him, India might see a couple of disappointing quarters on account of the COVID second wave. “I see an economic cycle coming, I see the upside coming but India is going to have a disappointing couple of quarters because of second wave and COVID impact, and people are worried about the third wave. So, there is a lot of optimism built into the recovery that is certainly coming.”
For the entire interview, watch the video.