Kotak Mahindra AMC is overweight on private sector banks and select public sector undertaking (PSU) banks, Nilesh Shah, managing director (MD), told CNBC-TV18.
“At this point of time, we are overweight on private sector banks, a couple of PSU banks; not the entire basket. Non-banking financial company (NBFC), we are underweight and other financial services like general insurance, life insurance we are overweight,” he said.
He further said that the AMC remains overweight on the IT sector and expects growth to pick up from hereon.
On IPOs, Shah said, “The global capital will prefer Indian start-ups over China. Our rule of law and our entrepreneurship will attract them and foreign portfolio investors will be better contributors for IPOs like Zomato and on that basis, post issue experience could still be good and that could be one catalyst for the market to move up from here.”
According to him, the Indian market is looking beyond the disruption owing to COVID-19. “Market is ignoring structural pain of COVID-19 related effects for the long-term gain of corporate profitability. In June 2020, NSE 500 companies reported about Rs 32,000 crore. It went to Rs 176,000 crore during September and went to Rs 209,000 crore in December ’20 against all expectations. In the quarter of March ’21, it was expected to be Rs 211,000-212,000 crore. So, people are expecting similar kind of profitability growth in corporate India,” said Shah.
For the entire interview, watch the video.