Nomura holds an overweight position on financials from a medium-term perspective.
Speaking in an interview with CNBC-TV18, Saion Mukherjee, MD and head-India equity research at Nomura India, said, “We have an overweight position on financials. In fact, even after reducing some weight there we still have an overweight position."
"We are constructive from a medium-term perspective and there are stocks where valuations are quite attractive,” he added.
According to him, the market is running with an assumption that the current COVID impact is a passing phase. “Eventually it may happen but we still do not know whether that will play out. Therefore, we think it’s better to be cautious at this point in time,” said Mukherjee.
Talking about currency, Mukherjee said, “Overall currency, Indian rupee particularly has done a lot better than many of the other currencies. At the margin, there are inflationary pressures as fiscal deficit is on the higher side and now the situation on COVID-19 and growth, so there are some question marks. Therefore, fundamentally we would not be surprised if we see some downward pressure on rupee going forward.”
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