3 weeks ago
Healthcare and consumer-related companies are good places to invest a large amount of money right now because these sectors are growing, says Nimesh Chandan, CIO of Bajaj Finserv AMC. However, he is worried about the IT sector due to new trade rules in the US that could slow down their business.
Chandan is particularly optimistic about the healthcare sector, anticipating strong performance driven by both domestic and export demands. He believes that current tariff concerns are temporarily suppressing pharma stocks, but the underlying fundamentals remain robust. "Otherwise, this year is likely to be very good for pharmaceuticals."
Conversely, Chandan expressed caution regarding the IT sector. This shift in perspective stems from concerns about a potential US economic slowdown triggered by rising tariffs, which could dampen demand.
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Chandan is bullish on the domestic sector, especially consumption and banking, financial services, and insurance (BFSI). He sees significant value in companies in the sectors of fast-moving consumer goods (FMCG), consumer durables, real estate downstream, banking, and non-banking financial companies (NBFCs).
“Auto is one sector where we are a bit cautious, more selectively looking at them,” he said.
Hospitality, travel, and quick service restaurants (QSRs) have been seeing good times and they continue to do well, he said.
He anticipates growth driven by rural recovery, lower interest rates, and upcoming pay revisions.
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Chandan advocates for Systematic Investment Plans (SIPs) as a disciplined approach to investing, offering mathematical and behavioral advantages by averaging costs and mitigating volatility.
However, he suggests that lump-sum investments can be strategically deployed in undervalued sectors like largecap, quality, healthcare, and consumption. He believes that largecap and quality stocks are currently undervalued.
"Difficult to point the exact bottom, but for largecaps and quality from hereon there is a good opportunity to make money", he said.
For the full interview, watch the accompanying video
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(Edited by : Unnikrishnan)
