The worst in earnings cycle is over and one might not see further downgrades in earnings from FY17, he says.
Kapoor says worst in commodities as well as emerging markets (EMs) is over and from hereon, one will see fund inflows. “We will see gradual, but definite improvement in commodities in coming years,” he says adding that this will be a certain positive for the Indian economy.
Once the economy picks-up, rural-related sector like two-wheeler and fast-moving consumer goods (FMCG) are expected to do well. Other than this, Kapoor is also bullish on sectors such as infrastructure, automobile, real estate and metals.
“Bull market for pharmaceutical sector is over,” he says adding that weightage needs to be reduced on the sector. Other than pharma, Kapoor is bearish on telecom and IT.
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