Portfolio check: ICICI Prudential AMC is betting on this mega trend
After a stellar rally in 2017, it is unlikely that 2018 will produce a similar return thanks to many macro headwinds such as rising crude oil prices and interest rates globally, S Naren, CIO, ICICI Prudential AMC, said, adding there are enough reasons for volatility to dominate markets in the next 12-18 months.
Speaking to CNBC-TV18, Naren said he prefers largecaps over midcaps and smallcaps over the next few years. “Midcaps are relatively overvalued than largecaps. In the past 2-3 years, fall in commodity prices as well as crude oil prices really worked for the broader market. But the trend is fast emerging and is slowly shifting towards largecaps.”
He sees the next mega trend emerging in healthcare, pharmaceuticals, and diagnostics. This despite the sector not doing much in the last 2-3 years. Explaining his rationale, Naren said, “As the whole world becomes older, it will help pharma companies. We think see it as one of the big megatrends for the next 20-30 years. Current prices offer investors the comfort of valuations and a good entry point.”