homevideos Newsmarket Newsstocks NewsPrefer industrial metals and energy sector: Sundaram MF's S Krishna Kumar
Prefer industrial metals and energy sector: Sundaram MF's S Krishna Kumar
Markets snapped their 2 week losing streak to end over 2 percent higher. All sectoral indices gave positive returns this week but the midcaps were the star performers with the index ending over 4 percent in the green.
Markets snapped their 2 week losing streak to end over 2 percent higher. All sectoral indices gave positive returns this week but the midcaps were the star performers with the index ending over 4 percent in the green.
S Krishna Kumar, CIO of equities at Sundaram Mutual Fund believes that we are going to have a very strong FY22 which will set the pace for next 2-3 years of growth.
"We are going to have a very strong FY22 which will set the pace for next 2-3 years of growth. So with an 8-9 percent CAGR in real GDP growth in the country, there is no reason to be negative or worried. There will be some corrections in between but broadly there is lot of reason to cheer with the government also pushing ahead on divestment and opening up different sectors etc."
He remains positive on industrial metals and energy sector.
"With the kind of economic growth that we are assuming domestically, the commodities part of the businesses which are around the industrial metals, energy, these are some areas which are seeing some ray of hope coming in. In the domestic market the government has been fairly protective of some of the industrial metal companies, therefore we are definitely bound to see rising spreads, rising margins and substantial volume growth that will come through. If housing, automotive and manufacturing sector is going to do well, then metals - steel, aluminium, copper, zinc all the companies around these commodities and value added parts there in, would be big areas of growth."
Rohit Srivastava, founder & strategist at Indiacharts.com advised investors to remain positive on the pharma sector for next week.
"The sector which I would easily back on probably will be pharma sector. The sector has just been through a retracement. It has pulled back and is starting to pickup some momentum. It is also a defensive - typically when markets are difficult you want to be in defensive space and I think the pharma sector offers us that defence."
"The weakest link in the market is still the banks. They are really not picking up. There could be a bounce but they may again weaken from there."
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(Edited by : Aditi Gautam)
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