“We have been focusing more on larger caps in Indian market,” said Andrew Holland, CEO of Avendus Capital Alternate Strategies in an interview to CNBC-TV18.
According to him, commodity prices are likely to move up and it will bode well for metal stocks. He is also bullish on cement stocks because of the government’s focus on housing.
On global markets, Holland said that US President-elect Joe Biden’s reconciliatory gestures towards China will give a boost to global GDP.
The two key risks for India in 2021 would be domestic inflation and a decrease in global liquidity.
“The biggest risk going into 2021 is not the growth factors; it’s whether inflation will pick up and global central banks pulling back in terms of liquidity and if they do that then it’s a risk to equity markets.”
Holland believes that earnings upgrades have begun and will continue.
For entire interview, watch video