Sandeep Tandon, the founder and chief investment officer (CIO) of Quant Mutual Fund in an interview with CNBC-TV18 stated that India continues to be a "buy on dips" market.
He supports this viewpoint by highlighting that Indian macros are currently the best they have been in the past 30 years. This favourable macroeconomic environment includes factors such as GDP growth, fiscal policies, etc.
India's GDP grew at 7.8 percent in the first quarter of the fiscal year 2023-24, as per the National Statistical Data (NSO) data, released on August 31. This is against 13.1 percent growth in the year-ago period and 6.1 percent growth in the previous quarter.
Tandon advises investors to embrace volatility as their best friend in the stock market. Contrary to concerns about market bubbles and euphoria, Tandon sees no imminent signs that Indian markets are at euphoric levels.
Quant Mutual Fund follows a structured approach to investing, using the Valuation, Liquidity, Risk Appetite, and Timing (VLRT) framework. This framework combines both quantitative and qualitative analysis, as well as behavioural analytics, at both macro and micro levels.
While Tandon acknowledges the importance of long-term investment themes, he also recognises the opportunities that exist in the medium term. Currently, Quant Mutual Fund is keen on sectors that have been neglected and beaten down.
These sectors include pharmaceuticals, metals and mining, auto ancillary component makers, and media. Tandon emphasises that these sectors are characterised by under-ownership, indicating potential for future growth as investor interest increases.
"For us the larger theme is manufacturing, but it is a theme for a longer-term perspective. In the medium term, we are looking for all the sectors which are neglected and beaten down. So we like sectors like pharma, metals and mining, auto ancillary component makers, media, these are the sectors where under ownership is there," Tandon said.
Watch the accompanying video for the entire discussion.
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
