Large cap IT still looks good for 6-12 months because of currency tailwinds. Rupee is unlikely to come back to 60’s and that support will continue plus growth looks fairly sustainable for them, he added.
The market could be in a consolidation phase for the next 4-6 months without any positive trends, said Ratnesh Kumar, managing director and CEO of BOBCAPS, adding that it is giving an opportunity for long-term investors to nibble in the market.
Globally, there is risk aversion going on because of the rates and what is happening with currencies, said Kumar, in an interview with CNBC-TV18.
According to him, the yields on the fixed income side have become high and attractive for investors but from equity point of view, the long term returns from equity would always be better if it is held long period.
"So, the attention currently is on sectors where business growth is good and the present weak market conditions are giving better opportunities in terms of valuations," he said, adding that historically, volatility in run up to elections or any such events, has been a great opportunity to look at companies with growth.
Sector specific, he said home building side and spaces connected to it will see consistent growth over the long-term and paint companies could be a beneficiary of that. The strategy is to gradually accumulate these spaces over a period of 4-6 months, he said.
Large cap IT still looks good for 6-12 months because of currency tailwinds. Rupee is unlikely to come back to 60’s and that support will continue plus growth looks fairly sustainable for them, he added.
(Source: CNBC TV 18)
