Looking to review exposure in commodities: Manish Kumar

Manish Kumar, Investment Head, ICICI Prudential Life Insurance in an interview with ET Now talks about commodities.

You have a strong exposure to commodities. Are you looking at cutting that exposure?

In the light of what has happened yesterday, yes, we will be reviewing our exposure but having said that, let me also clarify that the higher exposure to commodity is not so much because of our view on pricing, what we have basically done is we have taken a call on those specific commodity stocks where we see good volume growth and where we believe those companies are amongst the lowest cost producers in the world.

Therefore, irrespective of what happens on the pricing front, which can go up or go down from quarter to quarter, in the long term we will see healthy earnings growth even if commodity prices were to soften a bit, so it is more of a structural call you may say.