Advise investors to exert caution, bag sectoral leaders: Kotak Mahindra AMC

Pankaj Tibrewal, Senior Executive Vice President and Fund Manager-Equity at Kotak Mahindra Asset Management, discussed the market in an interview with CNBC-TV18.

According to him, market had a great run in midcap and smallcap stocks over the last fifteen months. Broader markets have significantly outperformed Nifty.

“We believe that it is time to be a little careful and exert some caution,” he said.

“Our advice to investors would be to moderate the return expectations, to exert some caution. We believe that in the next few months, consolidation or drawdown cannot be ruled out,” he added.

Kotak Mahindra AMC is positive on four themes from a slightly longer-term perspective. “First theme is big getting bigger, strong getting stronger. We are seeing consolidation across industries like tiles, plywood, cables and luggage. Our preference would be to bag sectoral leaders, to bag strong franchises in every sector. Second theme is on the capital goods side, third theme is the revival of residential real estate and the fourth theme is digitalization,” he explained.