DAM Capital Advisors says India is a safe haven for investors and a much better place to invest in the world.
We have had a good monsoon so far. Inflation has also peaked. I don't think we'll test the bottom. He said that the market will remain flat for some time.
The macro-environment has benefited India in the last few months, and the worst is that the people were thinking of higher inflation and higher interest rate doesn't seem to be coming true. A little bit of a pullback is due to the softening of commodity prices in the world and overall, I think the markets are oversold, he said.
The financial sector is in a good shape, according to the market veteran. He is very bullish about the auto sector as well as the manufacturing sector. He is cautious about the sectors that are dependent on the global economy.
Mehta said he is optimistic about chemicals, subject to valuations, which are still very expensive, on being asked about his top picks among information technology, pharma, and chemicals.
I will like to go into smaller banks, the private sector, maybe bet 10 - 20 per cent on that, but 80 per cent of my portfolio will be in larger banks because they're still at a very good valuation, according to Mehta. He is positive about private sector insurance.
Mehta is optimistic about equities because growth is very good in India. The market guru said that you can get a lot of good companies at decent valuations.
He stated that India's liquidity is very high. I think the FDI flows will continue with the kind of government reforms and the PLI scheme that India has announced. In India, the flow of FDI will continue. As soon as a situation is solved, FII flows will start flowing in.