Latest news with #AnandRadhakrishnan
Economic Times
4 days ago
- Business
- Economic Times
Looking for narrative stocks? These four themes look promising: Anand Radhakrishnan
Live Events You Might Also Like: Expect positive trend as benefits of rate cuts & consumption boost trickle down: Anand Radhakrishnan You Might Also Like: FIIs to return in a big way post BTA with US; IT a big pick for next 18 months: Sunil Subramaniam (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel , MD,, says Indian markets show interesting trends. Sustainability efforts gain traction. Manufacturing , especially defence, sees strength. Premium goods and services experience rising demand. Technology-based disruption companies emerge in logistics, e-commerce and fintech. These new-age companies show volatility. But some establish strong market presence. Sustainability, premiumization , manufacturing, and technology disruption offer opportunities. These four themes look promising for the currently there are multiple themes in the market. One is on the sustainability theme where not only in India, but globally, there has been a concerted effort to push towards decarbonization, alternate energy, electrification, recycling, etc. In India also, some of the companies which have been engaged in these spaces generally have got some tailwind. Though at the margin we have seen some moderation in the global push towards sustainability because of various policy issues globally, we have seen that in the domestic market there is a reasonable continued tailwind on are other themes also which have been currently focused. One is on the manufacturing side; we have seen defence being a subset of the Atmanirbhar or Make for India theme. We have seen reasonable strength. The companies have been declaring good numbers on the manufacturing side, be it the industrial goods companies as well as defence manufacturing companies. Some of the companies that supply ancillaries and equipment to railways, have been declaring good numbers and have healthy order books. That theme continues to remain fairly third theme which we feel is gaining a little bit momentum is the so-called premiumization trend. As the income levels go up, the demand for goods and services especially on the premium end of the market has been going up – be it in automobiles, financial services, wealth management, apparel, retailing system, in short multiple sectors. The companies that are engaged in the manufacturing and the delivery of premium goods and premium services have been trending at a faster growth rate and that is why the companies are less volatile, their earnings more resilient and provide very good multi-year growth the fourth trend which we see in the market is the technology-based disruption companies, like Eternal, Swiggy, Policybazaar, etc. We also expect more companies in logistics, delivery systems, e-commerce, fintech, food tech and healthcare technology. Though some of these new-age companies tend to be more volatile, there is a lot of uncertainty around their profitability, the business models are nascent and evolving but some of them are pretty strong and have established a moat and footprint in the marketplace. So, we would remain very constructive. A combination of all these four themes, sustainability, premiumization, manufacturing, and technology-based disruption look pretty interesting as the markets stand the earnings growth is little healthier as we go down the cap curve and largecap companies declared earnings growth are less than the mid and small-sized earnings growth. So, to that extent, one can justify a growth-led premium as we go down the cap curve. But growth is not the only reason why stock should value, there are stabilities, qualities, capital efficiency, transparency, there are many issues where we still have to justify why we should pay a significant premium to small we go down, while the growth gets more interesting, the valuations make it a very tight rope walk for us and therefore, we need to trade off between good growth companies which are valued very richly and moderate growth companies that are valued a lot more moderately in the marketplace. Yes, we are sacrificing growth for some margin of safety, but from a portfolio perspective, that is a very tricky trade off fund managers have to make while they are investing down the cap the largecap, we do see pockets of dull growth. For example, IT companies have been growing at low single digits and the visibility seems to be still very challenging for them. Some of the commodity companies continue to be volatile in earnings and there is no clear trend on global commodity prices which makes it tough for one to allocate big money. Similarly, the utility companies are little bit low growth. So, within the basket of largecaps, the proportion of moderately growing companies is very high whereas in the mid and small-sized stocks, we see the breadth being pretty healthy, more point on valuation is growth-led valuation, and the other is liquidity-led valuation. As we speak today, the mid and smalls-sized companies seem to be predominantly supported by the domestic investors, not so much by the foreign institutional investors per se. We need to be a little careful and watchful of the domestic liquidity conditions.
Time of India
4 days ago
- Business
- Time of India
Looking for narrative stocks? These four themes look promising: Anand Radhakrishnan
Anand Radhakrishnan , MD, Sundaram Mutual Fund , says Indian markets show interesting trends. Sustainability efforts gain traction. Manufacturing , especially defence, sees strength. Premium goods and services experience rising demand. Technology-based disruption companies emerge in logistics, e-commerce and fintech. These new-age companies show volatility. But some establish strong market presence. Sustainability, premiumization , manufacturing, and technology disruption offer opportunities. These four themes look promising for the markets. There are a lot of themes in this market, solar, EV, defence. They are called narrative stocks . Where are these strong narratives moving because that is where a lot of fresh money is moved into defence stocks , railway stocks, solar stocks and EV stocks? Anand Radhakrishnan: Yes, currently there are multiple themes in the market. One is on the sustainability theme where not only in India, but globally, there has been a concerted effort to push towards decarbonization, alternate energy, electrification, recycling, etc. In India also, some of the companies which have been engaged in these spaces generally have got some tailwind. Though at the margin we have seen some moderation in the global push towards sustainability because of various policy issues globally, we have seen that in the domestic market there is a reasonable continued tailwind on that. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Alarmes Esse novo alarme com câmera é quase gratuito em Barra Mansa (consulte o preço) Alarmes There are other themes also which have been currently focused. One is on the manufacturing side; we have seen defence being a subset of the Atmanirbhar or Make for India theme. We have seen reasonable strength. The companies have been declaring good numbers on the manufacturing side, be it the industrial goods companies as well as defence manufacturing companies. Some of the companies that supply ancillaries and equipment to railways, have been declaring good numbers and have healthy order books. That theme continues to remain fairly strong. The third theme which we feel is gaining a little bit momentum is the so-called premiumization trend. As the income levels go up, the demand for goods and services especially on the premium end of the market has been going up – be it in automobiles, financial services, wealth management, apparel, retailing system, in short multiple sectors. The companies that are engaged in the manufacturing and the delivery of premium goods and premium services have been trending at a faster growth rate and that is why the companies are less volatile, their earnings more resilient and provide very good multi-year growth opportunities. Finally, the fourth trend which we see in the market is the technology-based disruption companies, like Eternal, Swiggy, Policybazaar, etc. We also expect more companies in logistics, delivery systems, e-commerce, fintech, food tech and healthcare technology. Though some of these new-age companies tend to be more volatile, there is a lot of uncertainty around their profitability, the business models are nascent and evolving but some of them are pretty strong and have established a moat and footprint in the marketplace. So, we would remain very constructive. A combination of all these four themes, sustainability, premiumization, manufacturing, and technology-based disruption look pretty interesting as the markets stand today. Live Events You Might Also Like: Expect positive trend as benefits of rate cuts & consumption boost trickle down: Anand Radhakrishnan The valuations for the broader end of the market continues to remain higher than their historical averages and barring the last couple of trading sessions, we have seen outperformance from the SMID basket. Where do you believe the broader end is placed in terms of valuations and what is your outlook on large versus the SMID stocks ? Anand Radhakrishnan: Clearly the earnings growth is little healthier as we go down the cap curve and largecap companies declared earnings growth are less than the mid and small-sized earnings growth. So, to that extent, one can justify a growth-led premium as we go down the cap curve. But growth is not the only reason why stock should value, there are stabilities, qualities, capital efficiency, transparency, there are many issues where we still have to justify why we should pay a significant premium to small companies. As we go down, while the growth gets more interesting, the valuations make it a very tight rope walk for us and therefore, we need to trade off between good growth companies which are valued very richly and moderate growth companies that are valued a lot more moderately in the marketplace. Yes, we are sacrificing growth for some margin of safety, but from a portfolio perspective, that is a very tricky trade off fund managers have to make while they are investing down the cap curve. Within the largecap, we do see pockets of dull growth. For example, IT companies have been growing at low single digits and the visibility seems to be still very challenging for them. Some of the commodity companies continue to be volatile in earnings and there is no clear trend on global commodity prices which makes it tough for one to allocate big money. Similarly, the utility companies are little bit low growth. So, within the basket of largecaps, the proportion of moderately growing companies is very high whereas in the mid and small-sized stocks, we see the breadth being pretty healthy, etc. One more point on valuation is growth-led valuation, and the other is liquidity-led valuation. As we speak today, the mid and smalls-sized companies seem to be predominantly supported by the domestic investors, not so much by the foreign institutional investors per se. We need to be a little careful and watchful of the domestic liquidity conditions. You Might Also Like: FIIs to return in a big way post BTA with US; IT a big pick for next 18 months: Sunil Subramaniam
Economic Times
4 days ago
- Business
- Economic Times
Expect positive trend as benefits of rate cuts & consumption boost trickle down: Anand Radhakrishnan
Anand Radhakrishnan, MD, Sundaram Mutual Fund, says rate cuts are expected to boost both listed and unlisted companies by improving liquidity and credit availability. Consumption, which accounts for over 50% of the economy, is likely to rise due to tax relief, falling interest rates, and potential wage growth. Many legs of the economy seem to be reasonably aligned and at the margin, we would see both the benefits of interest rates and consumption trickle down. Investment is also projected to increase from both government and corporations. ADVERTISEMENT What do you make of the current market setup? It is quite impressive to see how the markets have managed to climb the wall of worry. Whatever could go wrong has gone wrong in the last six-eight months, but markets are firm like rock, not only in India but globally also? Anand Radhakrishnan: Yes, after a dip through January, February, March, we have seen a smart recovery in the market, not only in India, but across the world. Specific to India, we have seen financial conditions easing up relatively. We have seen cuts in interest rates, cuts in CRR, risk weights reducing in the banking system as well as NBFCs. We have also seen moderation of inflation and improvement in wages, especially on the rural side wage growth, By and large, the incremental data has been positive, and this is also reflected in some of the high frequency numbers like GST collections, E-way bill, momentum among others. For the year ending FY25, we have also seen very good corporate numbers across the breadth of industries. There is a record number of companies that are declaring double-digit growth. All of it seems to have had a positive effect in pulling up the overall market. Where do we go from here in terms of the next trigger because the earnings have not been great? While demand is there in terms of FIIs, SIPs, etc, etc, we are also seeing a lot of demand. If demand and supply is getting balanced, triggers are not there, and earnings are slowing down, what would take the markets higher from here? Anand Radhakrishnan: No, aggregate demand is pretty robust. What is the best indicator of aggregate demand? There are many indicators. We tend to track many, for example, people say the index of industrial production is a good measure of manufactured goods, I personally think GST is a very good measure because it is on goods and services that are sold; the government is collecting tax. If you look at it, it has been trending in mid-teens in the growth. So, aggregate market demand seems to be pretty okay. There are pockets of slowdown and pockets of relative strength and therefore, from that perspective, we can say we are in a healthy situation. Incrementally, what can change is that, one is the benefits of rate cuts will trickle down both into the listed corporates and unlisted corporates. The liquidity improvement should make credit availability easier and that currently, the credit growth is a bit tepid. It is less than 10% or so and, especially on the corporate loan growth. It can lead to some improvement and some kind of financial conditions becoming easier for companies and that should be positive. The second area which can improve is on the consumption side. Post the tax relief and the fall in interest rates and possibly a good wage growth and an impending wage revision for government employees, we might see consumption getting a leg up both on the urban side, on the rural side. Consumption is more than 50% of the economy, which has been on and off and it has been blowing hot and cold. We can see a more decisive positive trend there as well and we will see a continued kind of a growth on the investment side, both from the government and corporations. Many legs of the economy seem to be reasonably aligned and at the margin, we would see both the benefits of interest rates and consumption trickle down. ADVERTISEMENT The next big trigger or rather a date that everybody is watching out for is 9th July. Help us understand how you see the markets headed towards that because for today, there is still a lot of uncertainty and some reports suggesting that this deadline could be pushed back. But what sentiment are you getting for the markets given that some of the US markets are very near their all-time high levels and the Indian markets as well as the emerging markets, are doing very well today. Anand Radhakrishnan: You are right in the sense that after the initial jitters on the tariffs, markets seem to have shrugged it off partly because of the rollback of the US government on some of these issues as well as the time period window getting extended. The US in itself is looking to moderate interest rates and the government wants the interest rates to ease up and the dialogue between the government and seem to be wearing towards if inflation moderates in US, there is a scope for rate cut and tariffs seem to be coming in between the inflation and the rate cuts per se. In some sense, there is a pressure there to be moderate on the tariff side in order to pave way for rate cuts and then that should kind of give some tailwind for the economy to grow a little bit faster and growth is imperative for even markets like US, economies like US and we would see therefore at the margin the balance tilt in favour of moderation in the tariff efforts than what we have seen earlier, in which case market seems to be sensing it in some sense and in which case we seem to be finally positioned. ADVERTISEMENT (You can now subscribe to our ETMarkets WhatsApp channel)
Time of India
4 days ago
- Business
- Time of India
Expect positive trend as benefits of rate cuts & consumption boost trickle down: Anand Radhakrishnan
Anand Radhakrishnan , MD, Sundaram Mutual Fund , says rate cuts are expected to boost both listed and unlisted companies by improving liquidity and credit availability. Consumption, which accounts for over 50% of the economy, is likely to rise due to tax relief, falling interest rates, and potential wage growth. Many legs of the economy seem to be reasonably aligned and at the margin, we would see both the benefits of interest rates and consumption trickle down. Investment is also projected to increase from both government and corporations. What do you make of the current market setup? It is quite impressive to see how the markets have managed to climb the wall of worry. Whatever could go wrong has gone wrong in the last six-eight months, but markets are firm like rock, not only in India but globally also? Anand Radhakrishnan: Yes, after a dip through January, February, March, we have seen a smart recovery in the market, not only in India, but across the world. Specific to India, we have seen financial conditions easing up relatively. We have seen cuts in interest rates, cuts in CRR, risk weights reducing in the banking system as well as NBFCs. We have also seen moderation of inflation and improvement in wages, especially on the rural side wage growth, By and large, the incremental data has been positive, and this is also reflected in some of the high frequency numbers like GST collections, E-way bill, momentum among others. For the year ending FY25, we have also seen very good corporate numbers across the breadth of industries. There is a record number of companies that are declaring double-digit growth. All of it seems to have had a positive effect in pulling up the overall market. Where do we go from here in terms of the next trigger because the earnings have not been great? While demand is there in terms of FIIs, SIPs, etc, etc, we are also seeing a lot of demand. If demand and supply is getting balanced, triggers are not there, and earnings are slowing down, what would take the markets higher from here? Anand Radhakrishnan: No, aggregate demand is pretty robust. What is the best indicator of aggregate demand? There are many indicators. We tend to track many, for example, people say the index of industrial production is a good measure of manufactured goods, I personally think GST is a very good measure because it is on goods and services that are sold; the government is collecting tax. If you look at it, it has been trending in mid-teens in the growth. So, aggregate market demand seems to be pretty okay. There are pockets of slowdown and pockets of relative strength and therefore, from that perspective, we can say we are in a healthy situation. Incrementally, what can change is that, one is the benefits of rate cuts will trickle down both into the listed corporates and unlisted corporates. The liquidity improvement should make credit availability easier and that currently, the credit growth is a bit tepid. It is less than 10% or so and, especially on the corporate loan growth. It can lead to some improvement and some kind of financial conditions becoming easier for companies and that should be positive. Live Events You Might Also Like: Next 12 months going to be a stock pickers' market; it would be tough to generate great returns: Dipan Mehta The second area which can improve is on the consumption side. Post the tax relief and the fall in interest rates and possibly a good wage growth and an impending wage revision for government employees, we might see consumption getting a leg up both on the urban side, on the rural side. Consumption is more than 50% of the economy, which has been on and off and it has been blowing hot and cold. We can see a more decisive positive trend there as well and we will see a continued kind of a growth on the investment side, both from the government and corporations. Many legs of the economy seem to be reasonably aligned and at the margin, we would see both the benefits of interest rates and consumption trickle down. The next big trigger or rather a date that everybody is watching out for is 9th July. Help us understand how you see the markets headed towards that because for today, there is still a lot of uncertainty and some reports suggesting that this deadline could be pushed back. But what sentiment are you getting for the markets given that some of the US markets are very near their all-time high levels and the Indian markets as well as the emerging markets, are doing very well today. Anand Radhakrishnan: You are right in the sense that after the initial jitters on the tariffs, markets seem to have shrugged it off partly because of the rollback of the US government on some of these issues as well as the time period window getting extended. The US in itself is looking to moderate interest rates and the government wants the interest rates to ease up and the dialogue between the government and seem to be wearing towards if inflation moderates in US, there is a scope for rate cut and tariffs seem to be coming in between the inflation and the rate cuts per se. In some sense, there is a pressure there to be moderate on the tariff side in order to pave way for rate cuts and then that should kind of give some tailwind for the economy to grow a little bit faster and growth is imperative for even markets like US, economies like US and we would see therefore at the margin the balance tilt in favour of moderation in the tariff efforts than what we have seen earlier, in which case market seems to be sensing it in some sense and in which case we seem to be finally positioned. You Might Also Like: Is a market rally sustainable now and how soon will it see a correction? Sudip Bandyopadhyay explains
