As 2023 draws to a close, Vinit Sambre, Head of Equities at DSP Mutual Fund discussed with CNBC-TV18 some key themes that DSP Mutual Fund will be watching out for in 2024.
Sambre talked about the importance of concentrating on sectors that provide a margin of safety given many sectors are currently trading at rich valuation. He believes speciality chemicals and consumption are two sectors that fall at the lower end of the economic pyramid and have favourable business cycles at present.
He specifically mentioned the pharmaceutical sector as reasonably promising due to its consistent growth dynamics, maintaining an average of 11-12% and boasting a good return on capital (RoC).
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Discussing other sectors, Sambre expressed a positive outlook on the information technology (IT) sector, despite a sluggish environment. He cautioned, however, about the need for careful consideration of valuations in the near term, citing potential growth challenges over the next two or three quarters.
Within the consumer basket, Sambre suggested looking at the auto segment and consumer discretionary, particularly quick service restaurants (QSRs), where demand has been slow.
He highlighted the importance of identifying pockets that have been lagging, as improvements in overall economic recovery are likely to positively impact their performance.
For more details, watch the accompanying video
(Edited by : Shweta Mungre)
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