Market correction brings valuations to historical averages: Nilesh Shah
Nilesh Shah, Managing Director at Kotak Mahindra Asset Management remains bullish on pharmaceutical sector and on banking on a selective basis.
Market correction brings valuations to historical averages and from here onwards one could start increasing allocation to equity as an asset class, said Nilesh Shah, Managing Director at Kotak Mahindra Asset Management in an interview to CNBC-TV18. A word of caution though from him, "one shouldn't rush in at one go".
He believes, there is always an opportunity to increase allocation to equity in this kind of correction.
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One should be inclined more towards defensive, largecap, bluechip, reasonably valued stocks rather than extensively overvalued stocks, he said.
He is overweight largecap technology stocks compared to midcap technology stocks. However, midcaps will correct and will provide some opportunity at some point of time, he said.
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Shah remains bullish on pharmaceutical sector and on banking on a selective basis.
“Tech-pharma kind of defensive sector will be good sector to invest into. Public sector undertaking (PSU) banks – except one-two names – are more of a trading bet rather than investment bet,” he said.
Higher oil prices are neither good for consumers nor good for producers. “Undoubtedly it is a pain for us but it is a pain which we can bear,” he said.
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For the full interview, watch the accompanying video
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First Published: Feb 24, 2022 6:06 PM IST
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