Rana Gupta advises caution on IT sector, check which sectors he bets on for short term
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As global markets remain uncertain, investors increasingly look for clarity on where to deploy capital in the near term. With concerns around the geopolitical developments, sectoral rotation within equity markets has become more prominent. In this context, the short-term outlook for Indian equities continues to be a subject of active discussion among market participants.
Gupta dissected the current market scenario across short, medium, and long-term horizons, offering a roadmap for navigating through periods of turbulence.
He also expressed a positive view on financials, particularly due to expected growth in credit after a subdued period, saying, “We like the financials because we think credit growth is going to pick up after being very soft for the last almost 7 to 12 months now, so that is also one segment we like.”
Looking slightly ahead, Gupta highlighted Indian infrastructure and telecom as attractive in the short to medium term. He explained, “We continue to like the Indian infrastructure segment which are non-tariff related and because of the correction they are now offering good risk-reward,” and added, “Telecom sector looks quite steady to us in the short to medium term.”Also read: Nifty traders, don’t sell in May - just sway. Here’s why the May myth crashes on Dalal Street
Breaking down the market outlook across timeframes, Gupta noted that globally linked sectors like IT and metals are likely to face headwinds in the short term. He said, "In the short term, clearly, the globally linked sectors whether it is IT or metals and all those sectors will face some headwinds."
He acknowledged that while the correction in large IT stocks may provide some comfort, “earnings momentum wise, they still continue to be soft for a while.”
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Amid this backdrop, Rana Gupta of Manulife Investment, offered detailed insights into preferred investment themes in the Indian market in a recent interaction with ETNow.
Gupta dissected the current market scenario across short, medium, and long-term horizons, offering a roadmap for navigating through periods of turbulence.
Gupta pointed to sectors that could benefit from domestic tailwinds. He stated, “The consumer sector could see some revival because of tax cuts and rate cuts. At the same time, the input costs can go down because of the crude oil price falling, so that is one sector that we like.”
He also expressed a positive view on financials, particularly due to expected growth in credit after a subdued period, saying, “We like the financials because we think credit growth is going to pick up after being very soft for the last almost 7 to 12 months now, so that is also one segment we like.”
Looking slightly ahead, Gupta highlighted Indian infrastructure and telecom as attractive in the short to medium term. He explained, “We continue to like the Indian infrastructure segment which are non-tariff related and because of the correction they are now offering good risk-reward,” and added, “Telecom sector looks quite steady to us in the short to medium term.”Also read: Nifty traders, don’t sell in May - just sway. Here’s why the May myth crashes on Dalal Street
Breaking down the market outlook across timeframes, Gupta noted that globally linked sectors like IT and metals are likely to face headwinds in the short term. He said, "In the short term, clearly, the globally linked sectors whether it is IT or metals and all those sectors will face some headwinds."
He acknowledged that while the correction in large IT stocks may provide some comfort, “earnings momentum wise, they still continue to be soft for a while.”
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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