Sachin Relekar, fund manager, LIC Mutual Fund, in an interview with CNBC-TV18 shared his views on the fundamentals of the market.
"The commentary in terms of volume growth has been weak from consumption companies. There were a lot of tailwinds after GST last year but now that those are behind us, the commentary has become softer," said Relekar.
The companies are also talking about weak rural demand, different monsoon forecasts, he said adding that this could be a temporary phenomenon and one could see traction in the second half of the financial year.
On autos, Relekar said for two-wheeler it is unlikely that industry volumes would revive at least for a year or so.
"For four-wheelers with BS-VI norms coming in a lot of product launches are getting deferred but volumes could revive from the second half of FY20. So a bit optimistic on this segment," he added.
“We are buying the largecap banks where consumer franchise is strong. Moreover, they are on the right side of technology change, which is helping their business,” Relekar said.
On pharma, he said they try to avoid companies with US generic business. The house is positive on domestic pharma opportunity but valuations there still look expensive, said Relekar.
Talking about midcaps, he said it is a stock specific, bottom-up approach and still remain cautious on the space.