Vetri Subramaniam from UTI AMC raises concerns about midcap and smallcap valuations, suggesting asset allocation with debt for tax benefits. He emphasizes market uncertainties and the dominance of largecaps in dealing with economic changes. THe also says banks valuations are extremely attractive and this sector ought to punch its way through the next 2-3 years and participate in the country s growth.
Mutual funds have net sold central government bonds worth 143 billion rupees ($1.72 billion) over the last seven sessions, including a record single-session sale of more than 60 billion rupees on Monday, data showed.
The company s outperformance over its peers is fully priced in at the current valuations, Kotak said in a note as it slashed the stock s fair value to Rs 3,750, a 1.5% climbdown from Tuesday s closing price of Rs 3,811.
Relative comfort on valuation is to be found in large caps in sectors such as BFSI, pharma and healthcare over a one-year horizon, says Vetri Subramaniam, CIO at UTI AMC.
Ajay Tyagi of UTI AMC highlights the attractiveness of undervalued assets to long-term investors. Indian investors are shifting from fixed deposits to equity due to its high performance. However, caution is advised as the market is trading at higher valuations. Private sector banks and certain consumer sectors offer potential opportunities for growth.