Gradual market recovery in FY24 more likely than a one waybull run as global macros continue to be uncertain.
Growth with a focus on quality is what Sumit looks for instocks. He also has a penchant to look for relatively undiscovered ideas – he isunafraid to go against the consensus and back his own convictions.
Sumit’s biggest learning is the importance of sticking toyour style through market cycles, through ups and downs.
Sumit is buying into IT sector’s weakness – contrary topeers who are staying away. He believes the short term pain is worth enduring forthe longer term wealth creation potential of buying at these prices.
He is bullish on financials as he says the third of 3 cycles– credit growth - has yet to play out. The first two cycles – asset qualitycycle and margin cycle have played out. But significant volume growth potentialexists as the credit growth cycle commences.
Exposure in chemicals sector is through bottom-up non-consensusideas where Sumit strongly believes a sizeable growth runway exists, and at areasonable price.
Industry has its work cut out in the large caps space:active fund managers have to work harder to generate alpha and product managershave more work to do to create wider variety of passives that harness the fullpotential of large caps.
Plenty of attractive opportunities available in small/midcapconsumer companies (staples and discretionary) as well as small/midcap pharmacompanies.