Sandeep Bhatia, Head of Equity and Country Head for India at Macquarie Group believes the market is currently overcrowded and expensive.

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“The whole market is an overcrowded trade. So, either you step off this market, or continue to be in the safer parts of this entire market, which is the private sector banks,” he said in an interview with CNBC-TV18.

“In 3-6 months, you could see some of the ferrous metals perform. So, we like Tata Steel. So, these are parts, in which you can generate alpha. But the reality is that this is an expensive market and there could be bouts of corrections and price correction, therefore, would be a safer point to enter the market,” Bhatia said.

Bhatia also touched upon the pressing need for India to scale up its capacities and technologies in the railways and defence sectors. He noted that the size of Indian firms operating in these industries is still subpar, indicating that there is significant room for growth and development.

On FMCG, he said, “This is a slowdown which has been there for this year. The market is trying to wish it away, but it continues to come every quarter in terms of the commentary that comes from companies. I would think that at least till June-July next year, the consumer sector will be an underperform.”

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(Edited by : Shweta Mungre)

First Published:Oct 6, 2023 3:54 PM IST