Talking to CNBC-Awaaz on the future outlook after the market reached new record levels Aditya Sood, fund manager, InCred Asset Management Aditya Sood said that the kind of rally seen in the market for the last 2-3 days is due to the announcement of rate cut by the US Fed. The market was expecting that the US Fed would cut the rate by 25 basis points but the 50 basis point cut has been surprising for the market. US Fed’s interest rate cut also leads to reduction in rates in other countries. Aditya Sood further said that for the last 4 years we have been seeing earning growth accelerating. Sectors which have strong earning growth will be seen performing well in the future. He says that investment in emerging markets may increase.
Good growth possible in sectors related to rural consumption
Which sectors will you buy from? Answering this question, Aditya Sood said that the consumption sector looks very good. Especially in the consumption sector, we like the companies that focus on rural areas. Sectors related to rural consumption are likely to see good growth. At the same time, low unit consumption seems to have a lot of scope. There are good growth possibilities in consumption-related stocks going forward.
He further said that there is a possibility of good growth in the auto mobile sector, especially in the two-wheeler segment. In two-wheelers, HeroMotoCorp and Bajaj Auto companies have seen growth. Good growth is also seen in the QSR space. At the same time, the healthcare sector is being liked a lot.
Would love to be with the leader in the telecom sector
Talking about the telecom sector, he said that the telecom sector is a very defensive sector. To play the telecom sector, we are focusing on those companies which take advantage of optic fiber capex. We would like to be with the leader in the telecom sector. Be it Bharti Airtel or Jio. Till now we have stayed away from Vodafone Idea. If you are investing in derivatives, then you should focus on order backlog.
Agro chemical space is a hot favourite
Aditya Sood said that he likes agro chemical space a lot in chemical space. One should invest in companies related to agro space.
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