Anand Shah, Head-PMS and AIF Investments, ICICI Pru AMC continues to remain overweight on manufacturing sector and underweight on the information technology space.
Along with manufacturing, he has been overweight on power and banks.
“Power is another area where we are seeing growth sustaining into the next few years. Apart from that, corporate banks would also be beneficiaries of recoveries of the past non-performing assets (NPAs),” Shah told CNBC-TV18.
He believes the growth expectations from the IT sector need to be reset.
“There is still some time to go before the real growth that one would see in the IT companies and what investors are expecting – that misalignment is still a few quarters away,” he said.
In the cement space, he believes the next three months would see a general slowdown ahead of the elections .
However, from a long-term perspective, urbanisation leading to growth in housing will be the key driver for the cement sector.
“Cement would be the key ingredient in infrastructure and housing. So we have been underweight on cement for a while but that is one sector which will have good growth, good operating leverage given that the pricing is weak,” he said.
For more, watch the accompanying video
(Edited by : Shweta Mungre)
First Published: Mar 28, 2024 6:49 PM IST
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