India is at an early stage of a multi-year financial upcycle, mentioned Arvind Sanger, managing companion of Geosphere Capital Management, on Thursday.
“We are in the early stages of a multi-year economic cycle that has legs and the banking sector looks like it has a lot of room in terms of loan and earnings growth to come. Therefore, while the stocks are not cheap, we do find some pockets of value in both the banking and NBFC space and that is worth looking at,” he instructed CNBC-TV18.
On COVID2.0, he mentioned, “The terrible second wave that has hit India hard will start to peak and roll off in the next few weeks; a roll-off may take a while. So the impact, economically, and not human tragedy, which is sad, but from an economic standpoint which is what the market is focused on, June quarter is going to be hard hit but beyond that things should move back towards some level of normalisation.”
On sectors, Sanger mentioned, “It’s time to buy cyclical, midcaps, and commodities. I think some of the issues in terms of wanting full employment and running inflation run hard and a number of things going on suggest that commodities could have a great run. So some of the commodity stocks are interesting to us.”
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