I would like to get a market understanding with the assessment of market caps. What is your opinion in terms of valuation, especially in small and midcaps? How do you think how global headwinds can affect our markets? I talk about one or two quarters deadline.
Nilesh Shetty: Our evaluation is expensive. I don’t think it is enough for safety in terms of risk-risk right now. Largecaps related to small and mid -ap pus are even better placed. Earnings have slowed down. If you look at the comments from Q4 numbers and C oporate ports and Q1 in that environment, the markets are within the distance of their highest higher.
In terms of financial results, earnings may be a disappointment for many companies in the near term. Therefore, investors need to be careful. In terms of geographical states, India remains relatively different from what has happened in West Asia, which India imports, excluding the second order of the impact of crude oil prices. But other than that, it does not directly affect India.
Of course, the tariff question and what India negotiates with Donald Trump will be eagerly viewed. We mean that India is still placed relatively better than most other economies. We will be able to sign a better deal than other economy. In large quantities, the content may not be affected on the valuation, but it can affect emotions in the near term.
In this scenario, the July 9th deadline is emerging, there may not be much effect, but what should anyone do? Should anyone focus on largercaps or focus on midcaps and smaller app?
Nilesh Shetty: Midcaps and Smallk APPs are very expensive. There may be special opportunities for the stock to you. But in large quantities, I expect that field … or that segment will not do good in the next 12 to 18 months. Largepaps are relatively better placed and you still have a big pocket of opportunity to allocate to the portfolio. At least our portfolio is now tilted to big cap names where we get security in terms of evaluation.
Geographically risk-proof Ranjan on fields to focus on your portfolio
Let’s talk about a six to eight -month deadline. How are you looking at the second half of this calendar year? In terms of your attention on consumption, where are you looking at, in terms of pocket driving factors that will be dominant in the next six months? In terms of themes, what’s to play and what is now beyond taste according to you?
Nilesh Shetty: Our portfolio style is value and therefore our focus is on evaluation. Although consumption per year can be selected in the next six to eight months, we have a significant period of safety in terms of evaluation in the stocks we have. We have a significant allocation in two-wheeler space in the portfolio. We have added a customer durable company that has worked less in the last two years, but now offers reasonable evaluation.
We continue to make big allocation in private sector banks where there is a significant valuation comfort than their own two -year history, which is a large part of the portfolio. We also have a name in the insurance space in the portfolio where evaluation is physically dispersed and where there is a significant period of safety.
We believe that IT services offer a reasonable assessment. They have missed the entire rally in the last 12 months and if there is any enthusiasm for discretionary expenses in the Western world, you will see that these companies are introduced and the same should be allocated to the investors. That’s where we have allocated. That is where we think fundamentals provide a better margin of safety in terms of valuation.
Expect a double-digit earnings growth from BSE 500 companies: Mukul Kochhar
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