On banks, especially private lenders and NBFCs, Vora said that the rising interest rate issue should not be a worry for them as long as there is moderation in such rates. In fact, such banks are currently able to pass on higher rates as well, he added.
The IT index has been buzzing since the start of 2018, even as other sectors witnessed heavy selling. This, even as benchmark indices fell around 10 percent from their all-time highs. Between January 1 and April 25, the Nifty IT index is up a whopping 20 percent. So, what has gone right with the IT space which has seen renewed interest among investors?
Mihir Vora, Director and CIO, Max Life Insurance, sees interest returning now to the IT space after lagging in the last few years. He added that institutional investors are increasing their exposure to the IT sector now.
According to Vora, rising interest rates should not be a worry for private lenders and NBFCs as long as there is moderation in such rates. “In fact, such banks are currently able to pass on higher rates as well.”
He likes local consumption plays as well as infrastructure stocks that will benefit from the government-led spending in an election year. Vora also expects more bias towards rural spending in this election year, based on which rural plays could perform well. He is also overweight on metals.
Vora sees the market offering single-digit returns in 2018 and advises investors to remain stock specific in their approach given the stretched valuations. “We have reduced our exposure to mid- and smallcaps as valuations are expensive.”