We remain selectively positive on large-cap, mid-cap IT stocks: Motilal Oswal AMC
Manish Sonthalia, head of equities-PMS at Motilal Oswal AMC, is of the view that the current market correction offers opportunity to buy rather than sell.
“So, the current fall is more a correction than a downtrend for the market, he said because things have changed for the better – oil prices have cooled of, liquidity issues are getting addressed, growth rates will pick up, GST collection are in vicinity of Rs 1 lakh crore, bond yields will stabilize and the Q2 earnings haven’t been a disaster also cut in earnings growth is par for the course,” Sonthalia said on December 6.
“However, it is difficult to take a medium-term call on the market per se but it is addressing short-term issues as they come,” he said.
Talking about sectors, Sonthalia said the house is still positive on selective largecap and midcap IT stocks. He does not think the valuations are expensive and expect high single-digit dollar revenue from the Indian IT sector.
Talking about the slowdown seen in the commercial vehicle segment, he said, “A lot of it is due to the liquidity issues for the past few months. Pre-buying on account of BS-VI is par for the course going forward in next 6-12 months but post 2020 there would be slowdown in growth for the segment.”
“On the passenger car side, Maruti will continue to be on the radar even though the next few quarters could be soft for them,” he said.