Talking about the market’s further outlook and the strategy of Kotak Multi Asset Allocation Fund Devendra Singhal, Equity Fund Manager, Kotak Multi Asset Allocation Fund. Said that there is turmoil in the market at the beginning of the year. Trump will assume the post of President on January 20. There will be volatility in the market after Trump’s arrival. Trump may increase tariffs. The effect is already visible in the currency market. FIIs are continuously selling. Volatility will be seen as Q3 results come. He said that there will be volatility in the next 20-25 days.
Q3 will be slightly better than Q2. Growth in consumption will be slightly good. He said that the margin profile will also be good in Q3. It will also be good in IT, auto and consumption. The truth will be known as soon as the results come. He further said that the balance sheet of corporate and banks has been corrected. Good for the coming 6-12 months. The winter crop was also predicted well. There will be a rise in consumption. This will be a positive trigger for the market. However, the weakness of the rupee is not good for the economy. Positivity is possible in export related sectors.
Which sectors are affected by Trump’s policy? Answering this question, Devendra Singhal said that it is not right to say anything right now. The first target is on imports from China. The impact will be visible from the reaction of the Chinese market. It is difficult to tell the impact of currency impact right now. Chemicals, automobile, pharmaceutical, IT have been affected.
What is your opinion on consumption sector? Answering this question, he said that the view on the consumption sector is good. The lack of consumption in the village has been fulfilled. Getting support from the government. There is a little less demand in urban areas. A rise in demand is possible in the coming 1-2 quarters. Consumption theme is good for the future.
Talking about the fund, he said that Kotak Multi Asset Allocation Fund was launched last year. This fund invests in 4-5 classes. There are equity, commodity, debt, overseas funds. This fund has had a good start. It has 65% exposure in equity, 18% in commodity and 17% in debt.
You will get double return in this commodity
A positive attitude has been formed regarding consumption. There is a trend in the lower class market. There is a trend towards entry level motorcycles and entry level cars. Whereas among commodities, there is a trend towards gold and silver. Gold and silver performed better than the market. There has been excellent return on investment. Governments are continuously buying gold. There is a good opportunity to remain in gold and silver. You will get double returns in the coming one year.
On valuation of sectors While talking, he said that the valuation of Nifty 50 is not very expensive. Midcap and smallcap are costlier than largecap. There are more opportunities for growth in midcap and smallcap. Earnings of midcap and smallcap are higher than Nifty. There are more opportunities for growth in the Indian market. Valuations are high in a few sectors.
Market This week: The trend of growth in the market broke, on a weekly basis this week the market saw the biggest weekly decline in 2 months.
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