Vinit Sambre, Head Equities & Fund Manager, DSP Mutual Fund, sees value in agrochemicals and agri inputs, textiles and auto ancillaries among smallcaps.
Let us talk about the broader markets and the kind of pick up that you have seen there. Are there certain segments that you are more focused on? What about cyclicals?
The last few months have seen quite swift recovery in the economy. Equally important has been the Budget where the government has made the right noises in terms of their intentions to support the broader economy. In line with that, we are witnessing a lot of optimism as far as markets are concerned.
Clearly on the back of a very strong third quarter numbers and very strong management commentary, valuations across-the-board have scaled higher zones. In terms of economic tailwinds, the recovery has been much broad-based as was required. The government has provided the requisite support. At the same time, one needs to be cautious about the valuations at which we are seeing these sectors scaling new high. We would like to say that the last few months have been quite strong in terms of the returns and while the economy may still recover, global headwinds in terms of cost pressures are coming up.
