Market sentiment may waver with tariff uncertainties, but Bajaj Finserv AMC continues to be clearly bullish on markets. First order impact of tariffs are on 3% of BSE500 companies. Total negative impact on GDP growth is pegged at about -0.5%.
Contrast that against the big consumption push from lowering taxes, interest rates, welfare scheme handouts and the upcoming Government pay revisions – which cumulatively add up to an impact of +2.0% on GDP growth. That a 4:1 positive : negative ratio – which underlines Sorbh’s bullishness on markets.
Bajaj Finserv Flexicap Fund completed its 2ndanniversary with a top decile performance across 1 and 2 yr timeframes. Sorbh credits this performance to managing the fund true-to-label as a flexicap strategy and rigorous focus on stock selection more than large sector calls.
Back in Mar ’24, the fund had over 33% in small caps, which was reduced to 16% by Jan ’25 and now stands at 26% - all stemming from individual stock selection at opportune valuation moments and profit taking where warranted.
Sorbh is adding autos, private sector banks, real estate companies, home improvement and capital market stocks. He has been funding these purchases by taking profits in select industrials and reducing IT exposure.
Within healthcare, Sorbh prefers CRAMS businesses, domestic pharma and is avoiding generic exports.
Within consumption, he remains bullish on discretionary consumption and is also bullish on select staples majors who are focusing on premiumization driven profitability growth. While volumes in staples may not grow rapidly, the much derided personal care segment for example is seeing a lot of wellness driven premiumization up-trading by consumers.
Sorbh says more than just domestic consumption, it’s the broader domestic cyclicals theme that will likely lead the next leg of the bull market.