Pockets in market worth revisiting; auto sector looking attractive: Invesco MF

In an interview with CNBC-TV18, Taher Badshah, CIO-Equities, Invesco Mutual Fund, said that some pockets of the market look worth revisiting after a long time. He explained that he is seeing an opportunity to buy some stocks which have seen a correction. However, he cautioned that the Indian market is still grappling with some inflation hangover, but largely, his view on Indian equities remains constructive.

On sectors, he said that he is turning constructive on some of them. According to him, the auto sector is seeing a cyclical recovery and is looking attractive. He also mentioned that he is more inclined to add auto original equipment manufacturers (OEMs) to his portfolio at this point. Further, he feels that there is some comfort within the IT sector with respect to earnings visibility.

He said, “We are holding back our view in terms of who will be the long-term winners with regards to things like a transition to electric vehicles or non-internal combustion engine (ICE) vehicles, but having said that there is a cyclical recovery prospect which is in place on multiple fronts both in terms of topline as well as bottomline.”

“While we continue to remain constructive on some of the auto companies which are relatively less prone to disruption. Incrementally, we are more inclined to add to some of the auto OEMs at this stage,” he said.

On IT, Badshah said, “IT is one sector where there is a fair bit of comfort with regard to revenue growth and there is decent clarity and visibility on earnings; maybe we can see a bit more correction but this is a pocket we are inclined to bite into this correction, into the current volatility of the market.”

Watch the video for the full interview.