Prateek Agarwal, Business Head & CIO of ASK Investment Managers is positive on the banking and auto sector.
Speaking to CNBC-TV18, Agarwal said, “In terms of cheaper areas of the marketplace, we do believe banks stand out. There are banks who were corporate banks, but now increasingly are turning retail. That is the space to look at. We do believe that SME and retail is the space to focus on. The guys who are focused on larger corporates will get disintermediated.”
“The idea is to be positive on the auto space. Yes, the space did go a tad ahead of fundamentals because we did suspect margins would not match up while numbers are growing, the models that were getting sold were probably of the lower end rather than the premium models. So, that said, if somebody is taking a long term view outlook on autos, I think that is a space to be focused on,” he said.
On markets, he said that the current fall is a consequence of increasing bond yields which causes a period of adjustment. However, he believes that the downtick should be bought into.
“We do believe that the downtick that we are witnessing, would be bought into and should be bought into because what you are looking forward is very strong growth over the next 9-10 months. Three quarters of results, all will deliver very good year-on-year (YoY) numbers and the macro in terms of inflation, in terms of growth will all look pretty strong. So, the idea is to put money at work and give time for the earnings and macro to provide tailwinds and support returns,” he said.
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