A $1.2 billion fund manager says 2022 is the year of not losing too much money
Motilal Oswal AMC’s Manish Sonthalia believes that 2022 will be a year of protecting capital and limiting downside. According to Sonthalia, technology stocks are seeing a valuation reset post their recent outperformance.
Motilal Oswal AMC’s Manish Sonthalia believes that 2022 will be a year of protecting capital and limiting the downside.
“Inflation is raising its ugly head globally and India is also not spared. So from that point of view, 2022 would be a year where protecting the downside is going to be more important than looking at some great upsides from these levels.”
According to Sonthalia, who manages funds worth $1.20 billion, according to Bloomberg data, technology stocks are seeing a valuation reset post their recent outperformance.
“India’s composition of the Nifty implies that two sectors comprise 55-60 percent of the benchmark and that is financials and technology. There are earnings comfort as these are the two sectors that are delivering numbers but again here we are seeing valuation reset – it’s not so much in the banking stocks but it’s definitely there in technology stocks.”
He believes that the rural economy will deliver strong growth and aid auto stocks.
“Most of the negatives for the auto sector are factored in the price or are getting priced in. Rural is in distress and two-wheelers are a direct play on the rural economy. However, things again are looking good from the next 3 year perspective on the rural side thanks to high agri commodity prices and high MSP prices. So I would be a buyer in the auto space.”
(Edited by : Abhishek Jha)
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
Lok Sabha Election 2024: What rural Delhi wants
May 16, 2024 10:10 PM
Over 50 onion farmers detained in Nashik ahead of PM Modi's visit
May 16, 2024 11:14 AM
Why Google CEO is cautiously optimistic about the election year
May 16, 2024 9:51 AM
Mark Mobius reveals how markets will react if NDA wins 400+ Lok Sabha seats
May 15, 2024 8:09 PM