“Order inflow continues to remain by and large intact, no real big surprises, and TCS in particular has remained quite resilient over the last few weeks.Purely from a valuation perspective and the fact that there is going to be a rebound in the IT spend over the next one to two quarters, both TCS and HCL Tech are looking quite attractive at current prices and valuations.”
“More people are selling these bonds than buying them. So we could get trapped into a credit spiral and any kind of unforeseen event, a bankruptcy or a blow up in a hedge fund will turn everybody very cautious and people will run for exits and the crowded exit will lead to a lot of pain.”
“We have added some power, energy related and utility related stuff. We have added to our position in Tata Power. We also like some of the transmission names where there is valuation comfort, light Power Grid, etc. and tactically maybe some of the thermal sources of power including Coal India. We continue to add in the overall home improvement.”
“We were like 50% plus in smallcaps. We have reduced the exposure over the last two months. And now smallcaps are less than 35% of the portfolio and the overall portfolio valuation also. We are tracking Nifty rather than being in the mid and smallcap range. There are select pockets still in smallcaps, but very selective.”
“HDFC Bank, Kotak Mahindra Bank and ICICI Bank are all facing different issues. Broadly, it is okay. I do not see financials in terms of real stress coming and at some point of time, the credit cycle will also reverse, some stress will come, but probably we are some quarters away from that.”