“If volume growth continues for auto companies then auto ancillary stocks could do well,” said Harsha Upadhyaya, CIO-Equity at Kotak Mutual Fund in an interview to CNBC-TV18.
Kotak MF expects cyclicals to outperform IT and pharma hereon.
“We do have defensives like FMCG, IT, pharma in the portfolio but larger tilt is towards domestic cyclicals where we haven’t seen activities coming back to levels and that’s where we are betting on. Therefore, we expect that over the next few months we should see complete recovery in activity levels in that domain and that should help stocks perform better,” said Upadhyaya.
According to him, real estate and cement companies are beginning to look up.
“We have been positive on midcap cement companies and specialty chemicals,” he said.
As a fund house they also expects the broader market to catch up with the largecaps.
Upadhyaya said that valuations of the Indian market were not cheap, but there was scope to move up.
For entire interview, watch video