Portfolio Allocation: ETMarkets Fund Manager Talk: Wealth Creation Opportunities in Finance and Logistics: Siddhartha Bothra

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“The financial sector looks one of the most promising given the recovery in credit growth and the benign credit cycle,” says Siddharta BothraThe head of finance, MOAMC.

In an interview with ETMarkets, Bothra said: “Another key sector to watch could be the logistics sector – given that it plays directly into the economic recovery and is one of the main beneficiaries of various reforms. recent initiatives initiated by the government”. Edited excerpts:

Where do you see the markets heading in Samvat 2079?
What we are witnessing today is a sign of major pessimism and fear in global markets. This is reflected in major market fear signals such as high short positions and unusually high cash holdings of institutional investors, etc.

The key issues driving this fear madness have been widely debated for some time now and to some extent already ignored by the markets given the sharp global market correction.

Unless some of these macro concerns escalate further, these scenarios often turn out to be buying opportunities for long-term investors and act as a wall of worry in the markets to stage a turnaround.

We think long-term investors will do better if they ignore market noise and focus on identifying a few key bottom-up ideas.

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Are there any important factors for the street to watch out for in Samvat 2079 that could derail the bull run? (Earnings, interest rates, etc.)
We have seen a very long period of accommodative monetary policy driven by excess liquidity globally by most central banks. This has led to very inflated valuations of financial assets.

We are now entering a period of correction of this trend, by most global central banks. Therefore, it is safe to assume that this single factor and its related implications will now weigh negatively on the markets for a few years to come.

You must therefore plan your investment strategy with this aspect in mind.

Which sectors are likely to remain in the spotlight in 2079 and why?
We believe that the financial sector appears to be one of the most promising given the recovery in credit growth and the benign credit cycle.

Another key sector to watch could be the logistics sector – given that it plays a direct role in the economic recovery and is one of the main beneficiaries of the various recent reforms initiated by the government.

What is your view of the Samvat 2079 IPO market?
The IPO market could continue to be under pressure in Samvat 2079, given the wide divergence between issuers’ valuation expectations and the market’s willingness to pay in this environment.

What would be your portfolio tip that you would like to share with readers?
This is a unique period in the markets, on the one hand, one needs to be absolutely cautious given the many global macro headwinds at play, while on the other hand, given the elevated pessimism, there are opportunities very interesting for long-term investors. .

We think long-term investors will do better if they ignore market noise and focus on identifying a few key bottom-up ideas.

Your views on income – is your income improving in Samvat 2079?
The overall earnings outlook for Samvat 2079 looks challenging in the near term, except in the financial vertical.

The Rupee seems to be heading south almost daily against the USD. Where do you see the headed motto in Samvat 2079?
Amid the rupee’s fall, where do you see gold heading in Samvat 2079? Should it be part of his portfolio?

(Disclaimer: The recommendations, suggestions, views and opinions given by the experts belong to them. These do not represent the views of Economic Times)

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