Motilal Oswal will be holding its 15th Investor Conference in Mumbai from August 19-21. Ahead of the big event, CNBC-TV18 spoke with Rajat Rajgarhia, MD-Institutional Equities at Motilal Oswal Securities and Gautam Duggad, head of research at Motilal Oswal Financial Services.
Talking about the investor mood, Rajgarhia said, "A lot of investors are focusing on what they own today. There is a divergence of flows between offshore and domestic and domestic investors have been buyers almost every week in this market."
"There has been selective buying by investors and a lot of the selling has been mainly ETF selling. As far as active investors are concerned, there has been churning of the portfolio both on the domestic as well as the offshore front," said Rajgarhia, adding that at some point of time people will start taking comfort if there are some positive measures on the growth front.
According to Duggad, "We are still in the early stage of consumption moderation and it will be some more time before we see a pickup in consumption trends. A large part of the slowdown in consumption is from the rural slowdown."
He is of the view that if one has a 3-5 year view then the time is right to pick some of the top quality consumption companies that have corrected and where valuations are cheap. "These stocks will keep compounding wealth. In the last 15 years, a lot of the top quality consumption companies have created 25-35 percent CAGR in their market caps."
With regards to the real estate space, Duggad said, “RERA has created more problem for smaller players. So I would remain focused on the balance sheet quality in this space and would try to be more biased towards leaders in the sector like Oberoi or Godrej Properties.”