Portfolio Strategy of Amish Shah and Rupal Bhansali

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HIGHLIGHTS

  • Amish Shah Optimistic on Finances and Capex Theme
  • Rupal Bhansali Says He Will Stay Away From Cryptos
  • Steel could continue to see its prices erode: Amish Shah
New Delhi: Sensex and Nifty are showing volatility in trading, with profit taking seen in autos, consumer staples and some financial stocks. Marginal gains are also seen in some IT stocks. Meanwhile, Amish Shah, head of India research, BofA Securities, said domestic cyclical sectors should do well over the long term. He remains optimistic as industrial investments have started to show green shoots on improving utilization factors. Private investment is expected to increase as the government opens up monopolies like railways, gas distribution, coal mining and electricity distribution, which will help PSU Capex shares

As financials remain its main sector bet. Amish Shah, head of India research, BofA Securities, said industrials and the financial sector should benefit for 7-8 years. He says that in an up cycle, good companies see their margins double, return on equity triple and valuations quadruple. And a recovery in the Capex cycle will also lead to credit growth, which will support the growth of the financial space. Speaking about the sectors he is cautious about, he said “the consumer discretionary and steel pockets could continue to see their prices erode.”

“We are only at the beginning of the bear cycle,” says Rupal Bhansali of Ariel Investments. In an exclusive chat with ET NOW, Rupal Bhansali stressed that she remains bullish on emerging markets versus developed markets. While talking about the top sectors on the watch list, she says, “The healthcare sector and some commodities in the global market are doing well, but investors should stay away from junk stocks and avoid companies. leveraged and loss-making”. Rupal Bhansali of Ariel Investments also advises investors to stay away from cryptocurrencies as the outlook for them remains bleak.

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Don F. Davis