Economy-facing sectors such as cement are poised to do well over the next two years, according to Harsha Upadhyaya, chief investment officer of equities at Kotak Asset Management Company Ltd. Growth will be led by improved capacity utilisation which will, in turn, strengthen the pricing power of cement companies, he told BloombergQuint in an interview.
After a heady run in Indian equities over the last couple of years, investors must enter 2018 with ‘moderate expectations', he said. The tentative revival seen in corporate earnings is likely to continue but that's largely priced in and is unlikely to lead to a re-rating, he said. Sectors such as state-owned banks, information technology and pharmaceuticals could be exceptions and see patchy earnings recovery, he added.
Watch the full interview here.
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