Structural earning upcycle for 4-5 years; bullish on IT sector: Vikas Khemani

Markets across the globe are on a bull run and scaling new heights almost every day. The Nifty is above 13,500 and the Sensex is hovering around 46,500, buoyed by COVID-19 vaccine hopes and a hefty stimulus from the US central bank.

Vikas Khemani of Carnelian Capital Advisors discussed the fundamentals of the market. According to him, the market is in a very structural earning upcycle for the next four-five years.

“We are very convinced about entering IT sector, manufacturing and real estate. Having said that, many more sectors will also do well,” he said in an interview with CNBC-TV18.

“IT sector looks strong and robust from a profitability growth perspective. BFSI segment – for the next four-five years we are looking for a very strong credit environment as well as the profitability growth environment,” he added.

“We are seeing a big shift coming from China to India on a manufacturing front. This is a very big structural change that happens post-COVID and that will provide a very big opportunity. Cyclicals are doing very well, the commodity will also do well. Sectors like real estate are coming back,” he said.

“My conviction on a long-term India story from two-three year perspective is very high and that continues to remain,” he said.