Overweight on financial sector: Nilesh Shetty

In a chat with ET Now, Nilesh Shetty, Associate Fund Manager, Quantum Long Term Equity Fund, shares his views on various sectors.

ET Now: So where is it that you are finding favour than. You have mentioned that you are looking at stock specific calls as oppose to doing a broader market call and you are sitting on elevated cash levels. Where is it that you are finding favour, what is it that you are looking to add if at all?

Nilesh Shetty: The last two stocks that we added were primary regulated entities and these are government policy facing companies which have taken hammering on valuations and the stock trigger bias. Our sense is the problems for these companies were temporary and slightly longer term these companies would do well. Incremental cash flow has flown into financials, into automobiles where valuations are slightly more favourable right now given that we have come off a high interest rate environment. Primarily, the larger overweights right now in the sector remain financials and consumer discretionary and within that automobiles and say slightly niche sectors like media and hotels. These are primary valuation calls.