Investors Can Immediately Invest Into Telecom, Consumer Durables And Autos: S Naren

“I think the domestic buying will continue in 2023. I would have never imagined that $30 billion of FII selling and Indian markets still being positive. So it is really the power of domestic buying that has really kept the market afloat. In June, when the market was much lower, I would have never thought that markets will stage a 20 percent rally from that low led by powerful local buying. So 2022 has been an incredible year for Indian markets,” Naren said.

Naren believes that consumption as a theme will do well over the next decade. He said investors can immediately invest in consumer sectors like telecom, consumer durables, and autos.

“In consumption valuations never correct. However, we believe that consumption as a theme is very interesting and one should look at it structurally over the next few years. In consumption theme, immediately it is best to invest in sectors like pharma, telecom, consumer durables, auto and later on when FMCG corrects or retail corrects then you can invest in those sectors at that point of time,” Naren said.

According to Naren, macro investing will be very important over the next decade. He said tactically PSU banks and PSU defence names look good.

Naren said, “Macro investing is going to play a lot of role over the next decade. We think that top-down investing has a long road because just imagine if the Fed comes and says I am going to cut rates, then imagine what kind of a bull market gets created. So macro investing through the business cycle route is another very good thematic way to continuously invest for the next decade.”

“We made a lot of money out of PSU banks. Tactically, PSUs look very good. Even today I have PSUs as top holdings in some of my funds and most of the time people ask me how can you have a PSU as a top holding in my funds. But they have all done so well. We also own a few PSU defence stocks,” Naren added