Mrinal Singh, CEO & CIO of InCred AMC, discusses the challenges of investing in the Indian market due to expensive valuations. He highlights the potential for growth in rural areas, the building material sector, and the auto sector. He also expresses interest in the housing and MSME segments of the financials sector, as well as the healthcare sector.
"We believe that the market is likely to show return divergence across sectors. Earnings growth will not be broad based and, hence, stock selection will play a crucial role. As the general elections approach, the markets are expected to remain volatile for a while. Historically, spending in rural areas tends to increase leading up to elections. Factors such as erratic monsoons, higher raw material prices, and the COVID pandemic have negatively impacted rural incomes."
Markets do respond in the near term to fears, but the most seasoned investors will continue to focus on profitability or earnings even during this time, Singh says.
On listing, the stock attracted more interest from investors and was locked in the 5% upper circuit. Overall, Digikore Studios closed the first day higher by 65% over the offer price.
Digikore Studios IPO will run between September 25-27 for which it has fixed a price band of Rs 168-171 per equity share. The IPO comprises a total of 17,82,400 equity shares, including a fresh issue of 1,260,800 equity shares and an offer for sale (OFS) of 5,21,600 equity shares.