Hey @sameernics, for the reply!
You got me completely right 
I believe that with GDP growth in longer horizon, there would be outperformance from finance sector. Adding on top of that interest rate reversal is a macroeconomic aspect I would like to play, with decrease in interest rates the spread for banks would become favourable. So that’s my style of investing I guess, additionally I find them in sweet spot regarding valuations, HDFC Banks (for sure going through issues LCR, LDR, NIMS and what not) at lifetime low P/BV, I’ll buy that, same for Kotak Mahindra Bank too. Bajaj Finance (Yes, RBI is strict on NBFC but 30% growth is something which can not be taken for granted at this base), I believe that the culture in india is changing from saving first to buy first on loan. BF would be the biggest beneficiary for this. Aavas is my proxy play to Home Loans, I downward averaged a lot but would make sure it comes down in the weightage. Everyone is using cards so SBI Cards and the Life Insurance exposure would increase, the biggest story in next 10 years (whenever a persom would get job and get out of poverty, it would be the first finance instrument they would buy) hence HDFCLife
Well, this is my proxy to realestate and with paints being stuff on which families would spent for premium. The rationale, I had IndigoPaints and Berger as core holdings, one small cap for growth and another large/mid for stability in consumer durables, with recent slump in Asian Paints (getting under 10 years average PE, I mean 20% cheaper then it’s median price), started increasing my position, might exit from Berger and move completely to Asian but would definately hold Indigo Paints as it’s growing in some pace.
Yes Sir, I completely align to that, currently my portfolio is 65% in Large Caps and another 20% is stock which is trading at bare bottom, with maximum fall if can get of 10-15% (Aavas – SBIMF brought at current price, approx 8% of equity).
Yes, I have recently shuffled and booked profits, IT and RealEstate were the sectors I booked from. Currently sitting on considerable amount of cash. Can deploy around 10-15L if 15-20% fall is there in Large caps. Which I’m not expecting, having elections in India and USA.
Thanks, I would love to get some suggestions from your end on what sectors and companies are you targeting or watching to build positions.
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