Invesco MF bets on autos in consumer discretionary; to focus on domestic theme

Taher Badshah, CIO-equities at Invesco Mutual Fund, on Monday, said that there are more opportunities in domestic-oriented stories than global.

“At this stage, the opportunity is more in domestic-oriented stories compared to global. India relatively is better placed the way the cycle is emerging, the economy is getting stronger during the course of the next two years,” Badshah said, in an interview to CNBC-TV18.

“Therefore, there is a preference which is oriented towards industrials, manufacturing, infrastructure-related opportunities – these are the things where we find relatively more value. Consumer discretionary including autos etc., are also pockets where we could see some value but we will have to be patient, both in terms of revival of growth as well as restoration of profitability,” he said.

According to him, opportunities in pharmaceuticals come for those inclined towards the US for sales. “The ones which are, probably more US-centric or generics-oriented etc., depending on a case-to-case basis are seeing opportunities and focus is particularly on those which have been struggling for the last couple of years on account of one reason, whether it be regulatory or pricing and those could be a couple of other spots where we find value today besides which there could be some specific healthcare-related opportunities, but those are more domestic in nature, not as much from a global standpoint,” said Badshah.

He said, his firm is focused on larger banks than mid-sized or small banks and the cycle is looking relatively stronger now n the real estate space as well.

For the entire interview, watch the video