Abhishek Basumallick shares insights on market trends. He favours small and midcap stocks despite expensive valuations. He also predicts a pre-election rally. He remains optimistic about PSUs, railways, energy transition, and real estate growth. Basumallick says he is bullish on insurance and chemicals sectors which could very well turn out to be dark horses for the Indian market.
“India right now probably is poised in a sweet spot. FPI numbers have been pretty good. But overall, if you look around the world, there are a lot of challenges. So there is a possibility that we can get bad news from global markets and Indian markets is by no means completely decoupled from global markets. So risk will probably come from something that we are not factoring in today.”
“We have fairly large positions in the railways, in capital goods, some in pharma and more as a turnaround story. I like banks and NBFCs. MFIs have been doing really well. So, essentially the infrastructure related, real estate infrastructure, capital goods, railways, is the space where things are looking really interesting.”
“It is not right for us to conclude that midcap and smallcaps are in a bubble. Yes, they have done well and the most interesting part is if you look at the corporate results for last quarter, companies have performed well and that is probably leading the rally in midcaps and smallcaps.”