Vikash Kumar Jain, India Strategist at CLSA, on January 11, shared his expectation on Indian equities for the year 2024 in a conversation with CNBC-TV18.
Jain said CLSA's portfolio strategy for the year does not factor in a runaway rally in the market like last year. The focus is now clearly on the risk-reward ratio with an aim to protect against potential downsides while exploring opportunities.
One notable aspect of CLSA's strategy is its underweight position on consumption. Jain said, "Our biggest out-of-consensus call is that we have zero weight in consumption, so pretty big underweight in consumption."
He said that while these are high-quality companies, the investing environment for them has changed, with a gradual de-rating process underway.
Jain said
CLSA has avoided staples in its portfolio for the last three years except a few auto companies.
"I am not too hopeful because what needs to be done, and a lot of people are talking about consumption, I don't really sense the government changing its supply-side policymaking approach," he said talking about his expectation from the upcoming Union Budget.
(Edited by : Shweta Mungre)