SBI MF increases passive investment in power sector on economic revival hope

Mehta also weighed in on the impact of macros on the market saying that there is strong coordination where fiscal policy is very aggressive and monetary policy staying accommodative to provide more space for that fiscal aggression.

"I think that combination is giving investors hope that the global economy will come out of its current track and you will see a sustained pick-up in growth and inflation going forward,” he shared.

Sectorally, Mehta is betting on autos, private lenders and high cyclical stocks. The belief is that there will be a kickstart in the economic cycle as well as the investment cycle over the next few quarters.

"We are parking ourselves in these high-quality cyclicals whether they are from the industrial and manufacturing space or they could be large better-capitalized lenders or they could be some sort of commodity plays or some names from automobiles and discretionary consumption which will benefit as the economy starts to reopen,” he explained.