Ashish Chaturmohta, fund manager, JM Financial Services, talking about the market Said that the market texture is showing signs of change in trend. We are seeing this shift in those sectors and shares where we saw the maximum growth. During the phase of slowdown in the market, the same sectors and shares which had the biggest run in the bull market have declined the most.
After correction, market’s focus increased towards safety
Ashish Chaturmohta is of the opinion that after the correction, the market’s focus has increased towards safety. In such a situation, price stability has now started coming in the FMCG sector which was performing weakly for a long time. FMCG has fallen significantly in the recent decline. The second sector is IT in which the trend may increase. IT will benefit from weak rupee and improvement in the US economy. The market is playing safe bets. Profit booking dominates the high beta theme.
Need to focus on sector rotation instead of living on cash
Ashish further said that at this time there is a need to focus on sector rotation instead of relying on cash. He told that the widget of IT and largecap has been increased from his side. The weightage of midcap-smallcap has been reduced. The overweight view remains on EMS. From investment perspective, Ashish likes BSE and CDSL in capital market theme. He says that his strategy is to buy on dips in the capital market theme.
Avoid panicking too much in the market, focus on small and medium IT companies, manufacturing theme is also good – Ashish Somaiya
Electronic manufacturing space is quite good
Ashish says that despite the correction in recent times, the electronic manufacturing space (EMS) is looking quite good. This should be monitored. This sector seems to be benefiting from the government’s efforts to increase manufacturing in the country. We may see a growth of 30 percent annually in this space.
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