Daily Voice: Power, infra, clean tech among top FY25 themes for this fund manager - Business News, Finance News, Share Market News - Market trendz

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Thursday 4 April 2024

Daily Voice: Power, infra, clean tech among top FY25 themes for this fund manager

 As the market awaits RBI’s policy decision on April 5, Ashwini Shami, executive vice-president (EVP) and portfolio manager, OmniScience Capital, expects the Indian central bank to follow the lead of the US Federal Reserve.

The Fed may take a rate cut in May or June, which will likely force the Reserve Bank to take a necessary policy decision, Shami told Moneycontrol in an interview.

For FY25, the fund manager with over two decades of experience is betting big on power, banking, infrastructure, NBFCs and clean tech. Edited excerpts of the interview:

Are staples a good buy? What about their valuations?

The consumer staples sector is still richly priced compared to the growth the sector is offering. The Nifty FMCG index still trades at a P/E multiple of more than 42. With strong economic growth, the disposable income is expected to rise which may support growth for the sector.

However, there are multiple other sectors such as banking, IT, infra and power that are available at much lower valuations for the comparable or better growth rates.

The run-up to elections typically see higher economic activities in the form of rallies and other campaign-related expenses. Additionally, there may be certain higher direct cash transfers to farmers, which may increase consumption. This could be positive for two-wheeler and automobile manufacturers and FMCG companies in the short run.

However, looking at the massive infrastructure spending by the government on long-term projects that are impacting the overall economy, there is no specific case for the rural market to outperform the overall economy.

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