In chat with Anil Singhvi, Aditya Birla SunLife's Mahesh Patil says GDP may grow by 7% after FY22

In conversation with Zee Business Managing Editor Anil Singhvi today, Aditya Birla SunLife Chief Investment Officer Mahesh Patil said that he believes Covid-19 second wave won’t impact the market much as compared to last year and the economy would bounce back to new highs in the coming years. 

Patil says, “Our long-term view is positive. We are expecting around seven per cent GDP growth after FY22. Similarly, the earnings growth will bounce back by around 15 per cent in the next couple years, it has been down around 4-5% since last five years.” He suggests, the current market level is apt for investment and with the long-term perspective in mind, it is expected that there will reasonable returns from the market. 

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Patil also affirms that the second wave of covid won’t daunt the market as it did last year. So far, we have seen a correction of 5-6 per cent and we may expect a maximum of 10 per cent correction but not more than that, adds the chief investment officer. 

He further states, we could also see the impact of rising cases of covid on some companies’ earnings in the first quarter of FY22, as many states have been imposing strict measures to curb the pandemic.  

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Besides, the market has been getting huge support from strong global markets and economy. Global growth, especially of US and China is very strong and it’s creating a cushion for Indian markets.  

Patil banks on sectors such as Consumer Durables, Chemical Speciality, Cement and Banking and Financials for better returns. He mentions the investment cycle is recovering and each of these said sectors to grow exponentially after this covid disturbance in a long-term perspective. 

The asset management company has launched aggressive Flexi-cap fund category, Aditya Birla SunLife Multi-cap Fund. Patil says, "In this we have a disciplined allocation of 25 per cent each in Large, Mid and Small-cap, giving equal weightage and exposure across sectors."  

Significantly, this new fund model has a power of three, with best of the large-cap, mid-cap and small-cap companies stocks, added Patil.