Equity remains best investment bet, to set-off inflation woes; IT, pharma, private banks remain viable sectors: Dinshaw Irani, CIO at Helios Capital

Domestic stock markets are expected to trade in the range bound manner over the next 3-4 months, Dinshaw Irani, Chief Investment Officer (CIO) at Helios Capital India said in a chat with Zee Business Managing Editor Anil Singhvi.  

Calling the current market fall as a one-off incident which has been triggered by the events in Turkey and has had an impact on the emerging markets, Irani said. 

His advice to investors is to remain invested in a staggered form as the Indian prospects remain optimistic in a longer term.   

He said that the global markets are trading at high valuations owing to a low interest rate regime. He said that the markets are expected to remain expensive, going forward. He said that even the PSU stocks are now trading at higher PE multiples, such has been the euphoria.    

India has been an outlier in terms of Foreign Institutional Investors (FIIs) inflows and it was only a matter of time that they booked profits. He expects buying activity to resume from the next year.  

Depending on the market mood Irani picked three stocks today from varied sectors. The stocks were recommended with a short-term view.  

Irani said the market will remain expensive in India for now and range-bound in the upcoming year. He said that the focus should remain on individual stocks instead on indexes. Since the real interest rates are negative on account of high inflation, equity remains the best option for investors.  

Dinshaw recommended the new investors start trying to enter the market because the nominal term is in a good manner in the Indian market.    

Sectors recommended by Dinshaw Irani to watch out for include IT and services sector, pharma and private sector bank.   

He said export-facing sectors are performing well like and that should be the focus. The investors must be overweight on the IT sector. Accenture has led the way a big global play, he further said.  

Another sector picked by him was Pharma. He said it is a stable sector and could be a viable investment option for the investors. It will provide regular growth and the stocks are available at a good price, the CIO said.  

The third sector picked by him in the show was banking. He said new growth will be seen in private sector banks. He added, if GDP will grow then it will be because of consumption. And consumption depends on consumer funding in private sector banks.  

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