Trust Mutual Fund bets on capital goods, infra despite rich valuations; cautious on PSU banks, FMCG and large-cap IT
SEBI RA - Shubh Consultancy - INH000015826 - Sunil Kotak
Speaking at the launch of Trust MF's Large & Mid Cap Fund, Chief Executive Officer Sandeep Bagla said the recent correction has made Indian equity valuations more reasonable than they were two years ago.(from Moneycontrol)
"There has been a time correction, price correction, valuation correction and currency correction," Bagla said, adding that much of the excess valuation built up over recent years has already been absorbed.
He pointed to strong GST collections, healthy credit growth, advance tax collections and auto sales as indicators that domestic demand remains resilient despite global macroeconomic uncertainty.
"India continues to be the fastest-growing large economy in the world. The fundamentals haven't changed," he said, adding that foreign flows into semiconductor-heavy markets reflected portfolio rebalancing rather than any deterioration in India's growth outlook.
The fund house also remains positive on gold and other precious metals. Bagla said rising debt levels in developed economies could continue to support the asset class over the long term.
"One of my thesis is that the western world has no option but to print its way out of debt. That's where gold and precious metals should continue to do well," he said.
Chief Investment Officer Mihir Vora said Trust MF continues to favour sectors linked to India's investment cycle, including capital goods, infrastructure, defence, power transmission, renewables and data centres.
Stock on radar