A number of these stocks may be flat for the year: Shashank Khade

In chat with ET NOW, Shashank Khade, Senior VP, Kotak AMC PMS, gives his call on consumer and healthcare sectors.



Do you think the high flies for 2012 could get grounded this year- some pharma names, select consumer names and couple of NBFCs?

In consumer as well as in healthcare, there have been substantial outperformers and the breadth was large. My sense is, in CY13 the number of stocks which will outperform from these two sectors will reduce drastically shrinking the overall breadth. It is going to be very difficult to get large absolute returns in stocks across the board.

There will be select pockets in these sectors which may still continue to do well. But it is uncertain if in absolute terms they are going to be substantial, because in the second half of 2011 the markets have discounted a substantial amount of positive news. It is clear that at some point the pendulum will swing towards the capex and people may start betting on the other side of the economy.

While consumption will continue to chug along quite well, there is a good chance that at best a number of these stocks may be flat for the year. It is going to be an optimistic scenario. It will also be linked to how the interest rates get cut impacting the possible allocation. It has been years of under performance for these sectors.

Capital goods would be one sector to watch how it performs in this calendar year.