Aman Chowhan weighs investor alternatives in realty, chemical substances and auto sectors

The Indian actual property sector is at an intriguing inflection level, with debt ranges largely low and analysts suggesting the market could also be close to a peak. Aman Chowhan from Abakkus Asset in an interview to ET Now defined that markets focus extra on gross sales velocity than earnings when evaluating actual property corporations.

“Shares will appropriate if gross sales gradual, no matter revenue progress. Debt ranges don’t influence gross sales velocity, which will depend on shopper sentiment. We choose pan-India gamers, as they’re higher insulated if some pockets soften,” he stated.

On company earnings for the second quarter, Chowhan highlighted a number of sectors. Banking carried out properly, whereas the chemical sector was a shock, with some corporations posting robust margins and progress. Auto outcomes have been consistent with expectations, with no main surprises. “Total, earnings surprises got here primarily from chemical substances and some distinctive corporations,” he famous.

Concerning the two-wheeler business and up to date GST cuts, Chowhan identified that progress charges are higher than a yr or two in the past. Nevertheless, his portfolio avoids direct auto publicity on account of valuation considerations and Indian corporations’ preparedness for the EV transition. “We choose auto ancillaries, which permit us to play the expansion theme safely. Auto numbers are prone to keep optimistic over the following 4 to 5 quarters,” he added.

Buyers and analysts are carefully monitoring actual property, chemical substances, and auto sectors, balancing progress potential in opposition to valuations and market sentiment.