'Bullish on EVs, small private banks, and manufacturing' says Hiren Ved of Alchemy Capital

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The Indian equity market is set for a very resilient and structural run, says Hiren Ved, CEO, Director and CIO of Alchemy Capital Management, adding that “once the geopolitical issues get sorted out, settled, or priced in, one may see a significant run-up in this market.”

“The Indian market is very rational and despite everything being thrown at it, the real foundation of the resilience is the turnaround in the earnings growth story of India Inc,” the veteran equity investor said in an interview with Udayan Mukherjee, global business editor, Business Today TV.

Ved says the automobile and specialty chemicals sector can grow at very healthy double-digit rates. The market veteran is very bullish on domestic demand-oriented sectors and identified structural growth areas including engineering research and development, design, specialty chemicals and consumer discretionary– liquor and quick-service restaurants.

“India is likely to see secular growth in earnings and, is placed fairly well in terms of the growth cycle,” Ved added.

“I think manufacturing in India, whether you play through industrial or capital goods is likely to have a 10-year bull run. In my view, capital goods have a huge structural growth story,” the market expert noted.

Going deeper into the banking space, “clearly there are players like ICICI bank and Bajaj Finance, who are far better placed. However, if you look at the price action and performance, many of the smaller private banks are also doing very well, and also some of the PSU banks have done phenomenally well,” Ved asserted.

The market expert further said, “I think you got to be more aligned with companies that are focused on either new energy, electric vehicles, solar, or some part of the value chain where they will benefit because that’s exactly where the spending is likely to happen.”