A Balasubramanian, CEO,Birla Sun Life Mutual Fund
SECTORS BULLISH ON: Banking and finance, infrastructure, construction, capital goods, IT, power and auto & auto ancillary. Overall accelerated reforms, increased investment activity and rising production capacity in manufacturing will drive the growth. The economic revival, margins expansion on the books and level of provisioning of NPAs and overall efficiency will be main growth drivers for the banking industry.
SECTOR WE ARE AVOIDING: Telecom sector. Valuations are still not attractive for us.
MARKET OUTLOOK 2010: We are bullish on Indian markets. The economic revival,accelerated reforms,good rains and stable interest rates will be good for corporate earnings. If these fall in place,we are expecting a top line growth of 18% and bottom line growth of 15-16% for the corporate sector.
Srividhya Rajesh, Vice President – Equity, Sundaram BNP Paribas
SECTORS BULLISH ON: Auto,infrastructure and consumer goods. Consumption is holding up quite well. With rising income level—it is observed that income levels have risen by CAGR of 10-15%. People want to upgrade and those having twowheelers are opting for a car. We think the auto space will see good growth.
SECTOR WE ARE AVOIDING: Telecom and metals. The expected demand slowdown in China and the economic troubles in Europe don’t augur well for the metals sector. There is a bit of uncertainty,regulatory hurdles and hence we are staying away from the telecom sector.
MARKET OUTLOOK 2010: Growth is visible for the Indian markets. However, high fiscal deficit is a concern. If interest rates fall and inflation reigned in, our ratings for FY11 will be overweight.
S Naren, CIO,ICICI Prudential
SECTORS BULLISH ON: Pharmaceuticals, technology and telecom. Valuations in these sectors are quite attractive. While the telecom sector has lucrative valuations, the technology sector we believe is the export engine of the country.
SECTORS WE ARE AVOIDING: We are avoiding real estate, large cap cements and oil marketing companies right now. Valuations are still not attractive for us.
MARKET OUTLOOK 2010: Valuations are higher end of fair value. We foresee a correction. We are expecting less volatility this year. We are of the firm opinion that huge returns are unlikely to get repeated this year. Overall, we think that market will be close at a fair value—maybe earnings growth of around 20%.
Krishna Sanghvi, Vice President, Equities, Kotak AMC
SECTORS BULLISH ON: We are bullish on the banking, pharmaceuticals, IT and infrastructure space. Domestic pharmaveutical companies are expected to be net beneficiary of the new patent regime in the sector.
As regards the information technology sector, we see volume growth, while in the banking sector we see no concern for non-performing assets (NPA).
SECTORS WE ARE AVOIDING: We are avoiding real estate, telecom. Valuations are still not attractive for us. There is too much of competition and regulatory problems in the telecom sector.
MARKET OUTLOOK 2010: We have positive outlook on Indian markets. We believe one can expect earnings growth of 20%.
Prateek Agarwal, Head,Equity,Bharti AXA Investment Managers
SECTORS BULLISH ON: We are bullish on large and mid-cap IT companies. In banking we are bullish on second-rung banks and are not very bullish on large private sector banks. We are comfortable with valuations in these sectors. These sectors have good price to free cash flow and are cheaply available.
SECTORS WE ARE AVOIDING: We are avoiding telecom and FMCG. Competitive intensity is too high and hurdles in the form of regulatory norms don’t augur well for these sectors.
MARKET OUTLOOK 2010: 2010 will be a year of gain for us. We have high expectations. This is going to be first year of global growth and Indian markets should move up in comparison to its global peers. For FY11, we are expecting earnings growth of 20%. This estimation purely hinges on the liquidity situation in the market.
Source: http://economictimes.indiatimes.com/quickiearticleshow/5939353.cms
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