In India what we think is sectors like IT services or healthcare which have been a relative outperformer in this pandemic, there are structural stories in those sectors which can lead to better than consensus earnings today. We have a more bottom-up approach. We do like financials, healthcare and IT services as our top three overweight sectors in India.
Earnings in India have surprised positively. Once things normalize, ultimately companies that are more relevant to their customers will standout much stronger than purely these catch up trades. So we would continue to advocate buying into our portfolio, businesses which continue to have gained market share during these times because that is the ultimate barometer of greater elements to the customers. Therefore, we are holding on to our positions in the non-financials as well. Even within financials, we have got reasonably large positions, especially in the larger banks. Read more…..
Chart of the Day
Yuval Noah Harari, macro-historian, Professor, best-selling author of “Sapiens” and “Homo Deus,” and one of the world’s most innovative and exciting thinkers, discusses his newest work, “21 Lessons for the 21st Century.”