Harsha Upadhyaya believes banking is one of the few sectors that currently offers valuation comfort along with reasonable growth prospects in the medium term.
Besides banking, the President and Chief Investment Officer at Kotak Mahindra AMC also advises a preference for large caps, citing their relatively safer position as opposed to mid and small caps, which currently pose higher valuation concerns and carry inflated earnings expectations.
While Kotak AMC has positions in some IT names, Upadhyaya clarified that it is not an overweight position in the portfolio. He attributed this decision to the patchy business momentum in the overall IT sector, stating that many other domestic sectors are currently offering better growth opportunities.
Upadhyaya also talked about Kotak's new healthcare fund, focusing on hospitals, pharma, and related sectors. Upadhyaya explained,
"Over the last couple of months, we have slightly increased our overall exposure to pharma. We believe from a medium-term perspective, there is a reasonable amount of traction that we are seeing in terms of a growth rate and probably a good time to build a thematic exposure here."
For more, watch the accompanying video
(Edited by : Shweta Mungre)
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