IT and fast-moving consumer goods (FMCG) sectors are likely to do better in the year 2021, said Gautam Shah, Founder & Chief Strategist of Goldilocks Premium Research on Thursday.
Speaking in an interview with CNBC-TV18, he said, “IT is a structural bull market; don’t look at returns in absolute terms. In relative terms we are still midway into this bull market which the IT space started in April-May of 2020 and the largecap IT stocks could give midcap type returns in 2021.”
“Our working target for the FMCG index is about 42,000. I think both IT and FMCG give us a margin of safety and capital appreciation,” he said.
On the auto sector, Shah said, “This sector can pick up significant momentum from here. It saw a phenomenal run-up in the April-August period. So all the top stocks like Maruti, Bajaj, Tata Motors, Eicher are looking great on charts and it could be one of the surprise winners of 2021. So we are very kicked about this space in the coming year.”
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