Equity Outlook
Reliance Mutual Fund
IDFC Mutual Fund
Overweight on:
▪ Consumer facing - Thematic stocks with good profitability and
possibility of sustained growth.
▪ Stocks leveraged to the domestic economy and at reasonable
valuations
▪ Select Large-cap IT stocks – available significantly below historical
valuations.
▪ Increased exposure to Financials, Private , select NBFC’s and select
PSU’s.
▪ We continue to remain over-weight in Pharma due to structural drivers
& favorable currency
Underweight on:
▪Oil & Gas – Both Regulatory and volume growth uncertainty
persists.
▪FMCG – Valuations appear stretched in several pockets.
▪Commodities – remain underweight due to both domestic and
international price & demand scenario.
Overweight on:
▪ We like the consumer businesses, we have seen some moderation in discretionary spend in the recent past. Looking forward in the
current quarter which is the festive season, demand should resurface. Retail credit is showing above average growth rates as also
reflected in the banking sector (retail finance) results– Fundamentally the consumer business still remains consolidated, and
the balance sheets are in no manner stretched.
▪ From a portfolio strategy point of view in the financial services space we are unable to reconcile the deviation in the market caps of the
top 5 banks. We have started allocating money to the state owned banks which we think are at distressed valuation.
