Rahul Singh, CIO of equities at Tata Mutual Fund, spoke to CNBC-TV18 about the earnings growth and his sector recommendations.
“The good part is that the earnings recovery in FY20 seems to be on the cards at broad index level,” Singh said on Friday.
Talking the economy and the fiscal deficit, Singh said, “My own sense is that even if there is a slippage from the 3.3 fiscal deficit target in FY19, there are enough levers for the government to manage the headline numbers and slippages not to be too much,” he said.
According to Singh, "Private banks are expected to do well this year and it would not be just the corporate lenders but also banks with good CASA, good retail franchise."
IT, he said, is in a neutral zone. "One is seeing a reasonable traction on deal wins and earnings, which means FY20 earnings growth could be in the mid-teens. However, one will have to also keep an eye on impact of global slowdown on spending momentum by companies on IT. If one is owning largecaps then the risk reward is moderately favourable," said Singh.