Axis AMC's Equity Head Shreyas Devalkar said that they prefer sub segments of consumer space such as travel, tourism, retail and quick commerce. These preferred spaces are also part of Axis AMC's portfolio, he added.
As a category FMCG has not grown for quite some time, and going forward, the growth in this segment will depend on macros, Devalkar — who manages funds worth Rs 1.17 lakh crore, according to Axis Direct — told NDTV Profit in an interaction.
However, a part of consumption such as quick commerce has become interesting. Many small companies in this space are doing well. The other part is the retail industry performing good. This segment's growth is broadly similar to the food delivery industry's growth trajectory. Tourism, and travel are also capturing growth, Devalkar said.
In the infrastructure segment, despite numerous developments, it is not getting captured in the listed spaces. Road infrastructure is also not capturing in the real developments happening around the country. It is one of the reasons why the movements are not as similar as what they used to be in the past, he said.
Meanwhile, specific segments of infrastructure such as power, developments are getting reflected. The Private sector is spending capital expenditure in different segments of the power sector, he said.
View On RBI's Rate Cut
The historical data suggest that a 100-basis-point rate cut from the peak in a rate cycle is good but the present is different. Rate cuts have always been complemented by growth in exports. However, this time, exports are affected by global turmoil, he said.
Secondly, India is right now focusing on fiscal consolidation, unlike in the past when both the fiscal and monetary policy worked in tandem to revive growth in the economy, Devalkar said.
In the last six-to-seven months, the Reserve Bank of India has taken steps to improve liquidity, and tweak regulations to support non-banking financial companies, he said.
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