Cautious on Indian market in near term; positive on real estate, IT: Emkay Global

In terms of real estate stocks, he said, “My sense is that the real estate sector has been going through a downturn for almost 7-8 years and in the last three-six months, we are seeing some uptick because of lower interest rates and affordability factors. This is just the beginning as far as the sector tailwinds are concerned, we are very positive on the whole chain right from developers, to building materials, to housing finance companies. This sector has a large rub-off effect, we are very positive.”

Karwa is positive on the IT sector. He believes the sector is in a sweet spot and there would be better earnings growth. He advises investors to stay invested in IT stocks.

“From a two-three year perspective, I would be looking at more than 20 percent kind of compounding returns for the next three years. The sector is in a sweet spot, the investors who have entered should continue to remain invested,” he said.

In terms of metals, he said, “There can be more momentum but this is a cyclical sector, investors need to be very vigilant. If possible, stay away. There are many better opportunities to make money.”

Paint companies will continue to deliver steady returns to investors, he said.