Krishna Kumar Karwa, managing director of Emkay Global, on Tuesday said that the broad-based rally is here to stay, however, he cautioned investors to not get taken in by the euphoria.

“The stocks that they own in the midcap portfolio should be ones which have strong balance sheets and business prospects,” he said in an interview with CNBC-TV18.

Speaking about specialty chemicals, he said, “Chemistry knowledge in India is very strong and with changes in the global ecosystem, etc., the opportunity for many of these specialty chemicals is going to become much more robust than what it has been so far." Karwa continues to recommend a host of specialty chemicals for portfolios.

Karwa is also positive on the midcap IT sector. “The whole underlying business opportunity for IT companies has improved tremendously post this pandemic. Be it largecap or midcap IT companies, they are in for a good run.”

About HFCs, he said the competition is very limited. "Housing finance as a space looks interesting. My sense is that the number one and number two in this segment should continue to do well, there is no doubt on the opportunity itself,” he added.

On the auto sector, Karwa said personal mobility is the need of the hour and that we will see a lot of pent-up demand or fresh demand coming up. "Autos and auto ancillary sector will continue to do well. Auto ancillaries and autos are also seeing a lot of export opportunities growing. My sense is that no doubt the stock prices have run up but there is still a possibility to earn some decent returns over the next 12-24 months.”

First Published:Aug 25, 2020 12:58 PM IST