Invesco Mutual Fund prefers banks over NBFCs. Here's why
Taher Badshah, Chief Investment Officer of Invesco Mutual Fund, said banks have been affected less by the regulatory measures compared to NBFCs.
Invesco Mutual Fund currently prefers bank stocks more than non-banking financial companies (NBFCs) because of recent actions by the Reserve Bank of India.
Taher Badshah, Chief Investment Officer of Invesco Mutual Fund, explained in a CNBC-TV18 interview that banks have been affected less by these regulatory measures compared to NBFCs.
“Within the banks, there is an edge of private sector banks over public sector banks to some degree and not to say that we do not have a presence in public sector banks, but incrementally do we see more value, growth differential and valuation differentials now having levelled off between the two parts? We think so. And that is a view that we are going with, for 2024, as things stand now,” he said.
Other than banking and financial services and a select few NBFCs, the company identifies good value in the pharmaceutical sector, which is expected to experience a robust earnings recovery.
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The firm is cautiously exploring parts of the consumer market that cater to lower-income groups. It also looks at specific areas within the commodities market that have not done well recently but show potential for stronger growth in the future. Overall, it's being choosy in its approach.
“We all know that it is not a market where we have got value all over the place, but these are the pockets where we hunt a little more closely, we are likely to find some opportunities,” said Badshah.
The firm has significant investments in two-wheeler companies and suppliers of automotive parts.
For the entire interview, watch the accompanying video
(Edited by : Shweta Mungre)
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