1. Anoop Bhaskar (IDFC AMC): Only sustainable solution is rapid urbanisation. Time for India to give big fillip to affordable housing – if necessary, using tax incentives to ensure rapid project completion. Small cap valuations have come off very sharply. Well managed small cap funds will see earnings growth as well as re-rating over next couple of years. This space is very challenging to navigate, but shouldn’t be ignored. Look for fund managers who are actively engaged in adding small caps in their portfolio.

2. Sandip Sabharwal: (Asksandipsabharwal.com): Given that there is an SC ruling on not categorising loans as NPAs the Asset Quality of many banks will look artificially good even this quarter. Next quarter will show some reality.

3. Samir Arora, Founder and Fund Manager at Helios Capital is not convinced about a recovery in the auto sector, which has been among the industries hit hard by the disruptions in the wake of the COVID pandemic. He is also not bullish on the ‘Unlock’ trade, in which many many market participants are betting on an economic recovery because of the easing of the lockdown restrictions.

4. Harsha Upadhyaya (Kotak AMC): Pullback after sharp rally cannot be ruled out. Market is neither expensive, nor cheap. Portfolios are currently balanced between covid resistant sectors ( IT, Pharma, and FMCG), and covid recovery focused cyclicals. Cement and industrials look promising in the recovery process.

5. Manish Gunwani (Nippon AMC): Covid resistance defensive sectors (IT, Pharma, Chemicals) have run up sharply, and no longer offer valuation comfort. Cyclicals have rallied relatively less, and have moved up from distress to low valuation. Realistic picture on demand and supply is still very fluid. Latent demand is being projected and actual demand and therefore needs caution. Need to watch recovery in small businesses as they may not ever come back.

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