Invesco MF has been increasing its exposure to position in technology sector over the last few months, Taher Badshah, CIO-Equities of Invesco Mutual Fund said in an interview with CNBC-TV18.
He expects technology stocks to rise further from current levels.
“IT is breaking out into a situation where we can look for much better growth rates and that probably is not priced in,” he said.
“IT is in a position to deliver somewhere between 15 percent and 17 percent earnings growth over the next couple of years,” he added.
On the auto sector, Badshah said, “I would like to focus on some of the segments, which are a little more cyclical as far as autos are concerned, so commercial vehicle (CV) probably makes a better play from hereon.”
According to him, the financial pack still looks reasonable. “As we get out of concerns regarding interest on interest, moratorium etc, we should see some bit of credit growth come back in the system both on the retail and on the corporate side. If that were to happen then financials looks like a place where one can put some incremental money going forward,” he said.
On metals, he said, “Metal stocks appear to be fairly poised, they are cheap as well. At least from a price to book perspective. The only important thing there is balancesheets. If you are reasonably convinced with their ability to pare down debt or manage debt then they can make for a reasonably decent trade.”
First Published: Oct 15, 2020 1:30 PM IST
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