Andrew Holland bullish on these sectors
Andrew Holland, Chief Executive Officer, Avendus Alternate Strategies is a bit more skeptical about the overall broad-brushed approach of governance in all PSUs. According to him, government spending will continue to be increased very significantly in the defence sector.
Andrew Holland, Chief Executive Officer, Avendus Alternate Strategies continues to remain bullish on the travel and tourism sector. He believes international travel into India is yet to reach the pre-COVID levels. “I expect this sector to witness high growth,” he said in an interview with CNBC-TV18.
According to him, the overall auto sector could have been a bit of a laggard in recent weeks because of slowing consumption and competitive negatives around electric vehicles (EVs). “It's probably going to be one of those rotational moves into autos away from some of the other sectors, which have done well. We saw a few months ago IT doing well, the headwinds are still there for the sector,” he said.
Sharing his views on banking space, he said, if the narrative changes and the interest rates are coming down and bond yields are going to fall below 7%, the banks will do well.
One pocket that has been the highlight of the year gone by, even the start of this year, and continues to remain a major talking point in every market conversation is the public sector undertakings (PSUs).
He is a bit more skeptical about the overall broad-brushed approach of governance in all PSUs. According to him, government spending will continue to be increased very significantly in the defence sector.
Therefore, PSUs within defence sector - if one believes in the long-term future then - are the companies one would have to buy. “So I'm not concerned on that, but I'm not playing into this governance has changed and therefore, we should give it higher ratings,” he said.
India's top court, responding to a public interest litigation filed by a nongovernmental organization (NGO), has given the government a month to fix standard rates for different medical procedures. Private healthcare heads now fear an 'armageddon' if rates similar to Central Government Health Scheme (CGHS) are mandated to be applied to procedures in private hospitals.
Andrew believes it is still a long way from what's going to happen here. It is difficult to take a reasonable call. He further believes that the ratings of these stocks were very high. And it doesn't take a lot to knock it down with any kind of negative news. “I'm sure it will play out as the Armageddon story but obviously when you have very highly valued companies, there's not much margin for any kind of negative, which could hurt the earnings,” he said.
He would sit on the sidelines as he isn’t in the hospital stocks, he further mentioned.
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(Edited by : Shweta Mungre)
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