ASK Hedge Solutions CEO Bullish On These Sectors Despite Market Volatility

ASK Hedge Solutions’ Chief Executive Officer Vaibhav Sanghvi has shared his sectoral picks that may give investors better returns amid the ongoing volatility in the Indian stock markets.

In a conversation with NDTV Profit, Sanghvi said companies that are better exposed to the US economy, like IT, are sectors to watch out for. Consumer durables and CDMO and pharma are the other two sectors that could do well in the near future, according to the analyst.

Sanghvi stated that the US economy is performing relatively well, making any sector exposed to the US a sector worth considering.

“This (IT) is a sector where we think that from a business perspective, we have bottomed out. At the same time, you have currency starting to get in favour,” he said.

The top analyst noted that some green shoots are coming from IT discretionary spending.

“Looking at the commentary from IT companies, there are some amounts of green shoots that are coming about in the discretionary spend, which was elusive till date. And lastly, if the corporate tax reduction happens in the US, then there is a chance of higher IT spending as well going forward,” he said.

Sanghvi explained that IT is a sector to "watch out for," despite the expected weak earnings for the December quarter.

Vaibhav Sanghvi's second bet was on consumer durables, a sector that has fallen "out of favour" in recent months but may show signs of positivity.

“Second, from a consumer standpoint, which has been completely out of favour in the last six to nine months, our sense is the first positivity may be seen from consumer durables from a medium to longer-term perspective. In this weakness of consumer staples, if we get a sizable correction in this segment, I think this is good for a longer-term perspective,” he said.

Sanghvi shared three other sectors that may offer better returns. 

“Lastly, CDMO players and pharma players can be trade opportunities, along with renewables. So, these are the sectors from a long side. We do think that gives you a little of an opportunity,” the top executive said.

He added that his company will wait out the market volatility arising out of events like Donald Trump’s oath, Budget, December earnings and more.

“I think, better would be to stay put, stay highly hedged. Discretion is always the better part of valour. So we will wait, let these events kind of go by, because we are in no hurry,” he said.