Mukherjea also said that an interesting thing to look at in the next 3-5 years would be companies like Page Industries, which have super return on equity and great capital allocation
The market continued to trade around its record high levels amid intermittent consolidation, climbing all walls of worry such as the tightening of rates in US, and the depreciation of the rupee.
"Tightening liquidity can be a worrying trend for market. IT, pharma & export oriented auto companies are interesting themes at the moment due to rupee depreciation and strong US growth," Saurabh Mukherjea of Marcellus Investment Managers told CNBC-TV18.
He said there are opportunities in the market as the Indian rupee has moved from 64 to 70.50 to the dollar, consumption is strong, current account deficit is expected to go south.
The US is growing at 4.5 percent, which indicates that the US Federal Reserve is likely to be done with rate hikes soon, Mukherjea said, adding that auto exporters are also doing well.
Pointing out that the IPO pipeline has dried up in 2018, Mukherjea said, "Private equity firms did well as we are seeing promoters selling their stake, which we already seen in Hexaware, Mahanagar Gas."
He feels that the challenges are now on the macroeconomic front. These include currency depreciation and liquidity, among others.
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Mukherjea said that if one were to look at tier-2 and tier-3 cities, they would find that levels of income have increased dramatically over the last decade. "This has happened due to better road, electricity and telecom services," he said.
The examples he cited for this include La Opala RG, Kajaria Ceramics and Astral Poly.
Mukherjea also said that an interesting thing to look at in the next 3-5 years would be companies like Page Industries, which have super return on equity and great capital allocation.
"We have Page Industries, Marico, HDFC Bank, Astral Poly etc are 'Coffee Can' companies. We don't worry for day-to-day performance," he said.
For auto ancillaries companies like MM Forgings and Balkrishna Industries, which earn 60-90 percent of their revenue from exports, the rupee fall is a big boon, Mukherjea said.