In an interview to CNBC-TV18, Rupesh Patel, fund manager, Tata Mutual Fund, shared his reading and outlook on specific stocks and sectors.
2018 was volatile and challenging for investors because the year started with a bang but later on, with crude oil prices and US interest rates continuing to go up and US dollar strengthening, not only India, the entire emerging market pack suffered, Patel.
"There were concerns on current account deficit, on currency and to some extent on inflation. So, from that point, today if we look at the macro situation, most of the concerns which were there a few months back, they have significantly eased," Patel said.
"At the same time, from a global perspective as far as US interest rates are concerned, may be one or two more increases likely to come in near future but I think we are more or less closer towards the end of the cycle and that should also to some extent provide some kind of a breather to emerging markets including India," he added.
On NBFC and HFCs Patel said the events which happened in recent months has led to some kind of dislocation in the market.
NBFCs which are backed by good corporates will not have problems as far as liquidity is concerned, Patel said.
"NBFCs which are operating in a niche, which have conservative credit practices and which have been through cycles, I think they are the ones where I would still be comfortable holding on to. As far as housing finance companies are concerned, I do not have a very significant overweight position in any of my portfolios," he added.
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