Positive on IT; expect financial, domestic themes to aid Nifty50: Max Life Insurance

Mihir Vora, director and chief investment officer (CIO) of Max Life Insurance, on Tuesday, said that financial and domestic themes will aid Nifty upmove hereon.

“Some of the pockets are expensive; valuations are not a source of comfort, but if the market has to go to the next level, it has to be led by the domestics that include the financials, domestic consumption including discretionary, non-discretionary durables, autos, etc.,” Vora said, in an interview to CNBC-TV18.

According to him, the IT sector will be the biggest beneficiary of recovery in the US. “We are positive. The first leg of the big rally has been driven by the exporting sectors, by the outward-looking sectors and IT, of course, is the biggest one amongst them. The US recovery is really on a sound footing, followed by the other developed markets and IT is the biggest beneficiary of that. So yes, this should continue for a while,” Vora said.

On banks, he said, “Compared to some of the NBFCs, the private sector banks are looking more attractive in the broader financial theme, not necessarily bank index, but the overall financial theme. So there are financials like private sector banks, which continue to do well. One or two names, very selectively on the public sector undertaking (PSU) side, but the large private sector banks continue to offer good support and good value.”

He further said that the firm will stick to government themes in the industrials space.

He mentioned that the engineering, procurement and construction (EPC) segment looks good hereon.

For the entire interview, watch the video