Neutral on IT furnishes as dollar depreciation could harm valuations, says Co-Founder, Complete Circle Consultants.What has been your policy? Are you simply still waiting on the sidelines preventing the pulverize bone-dry or have you started to nibble into the market? We have been gnawing in. This is a market of two halves. One half is where probably the market is telling you are Covid resistant, which is where I am a little worried about. So your pharma, telecom and some of the FMCG lists are actually at pre-Covid positions. You have the other responsibility which is telling you that things are likely to get worse, which is your bank, which is down 40%. Your capital goods indicator is down 30%; likewise shopper durable and vehicle. So it is divided into two halves and you have to have a dual approach. Keep powder dry and wait for opportunities in pharma and telecom seats where the leadership is going to change. Keep looking at value chase in pockets like financials where you have life insurance, which is looking good. You have some niche uptake refers like Britannia and Tata Consumer which are looking good. Some currency also needs to be deployed smartly if you are insure, the AAA furnishes of two-five-year are actually at pre-Covid ranks and we now have a repo rate which has dropped quite a bit. So I sense good opportunities in the short- to medium-end of the bow and fixed income continues to look attractive to me.We too have those geopolitical pressures or rather India-China faceoff.I am not an expert on geopolitical and military matters but I conclude these are more diversionary tactics from China. I do not witness things genuinely heightening unless something drastically the changing nature of the hot of the moment. We are regrettably dependent on Dow on geopolitical issues and we are seeing wide swingings because we have done very little as far as the fiscal stimulus and liquidity measures are concerned. So that is why I reckon our valuations are far more comforting than the other EMs and the other markets because disallowing a few cases assets, we are not exactly a 10,000 indicator. It is more like a 8,800 -9, 000 index forbidding a couple of stocks. We are in for a little longer haul. I foresee July earnings will probably give you more opportunities. Keep deploying cash on dips. It is like the test match where you have to navigate the fourth and fifth date only saving your wicket. I review world markets will maintain giving you some opportunities. So we like a few pockets like the insurance space. There are opportunities in some consumption refers and as I said, pay continues to look attractive to me. We cannot cover the capital city goods sphere with the same brush but given the kind of constraints that some of these companies could see on account of the require flows and hanging, would you be a bit circumspect on the sector? I envision working capital would be a key issue here. More than the guild record, it would be the execution and how nibble hoofed you are. So we clearly like the bellwether which is L& T in this space. It gives you valuation consolation at these toll stages, which are sub-9 00. Also the fact that we will have to watch for key provokes for capital goods infinite. We have been talking of the US announcing a$ 1 trillion infra approach. We will have to see how the government spending picks up. Even if you learn the Q4 GDP amounts that came, it was largely led by government spending in agriculture; so some fillip on infra spending domestically and some international report being positive on a huge infra spend would be few positive triggers. I would like to watch out before certainly trying and taking the plunge right now.What is your make when it comes to the IT opening including Infosys? We are neutral on it. I make the price is already Rs 700 plus. I think what is working for it is that digital revenues now account for 42%. The enormous agreement winning remains good. I think they have favourable onsite render metrics. What we would like to see is what is the reduction in the volume-based billing and how much is the digital adoption going to offset the fall in discretionary spending. I also have a view; which while I am not a currency expert. Once you publish so much money and you have a fat balance sheet, which is now$ 7 trillion, at some target of meter the dollar will devalue and that is when the risk-on happens. We will have to watch out for currency as well because that has been one of the tailwinds the IT sector has had. So I will be neutral. I will be happy probably looking at HCL right now, which is a more diversified play; “youve had” IT services, ERP and R& D vertical and then you have their produce and stage vertical which they are really trying to work and make it a more diversified play. Likewise, it has much better valuation comfort. We find one-fourth on quarter the digital spending was up by roughly 6 %, a health an improved margins as well. So HCL Tech to me inspects a little better from a valuation point of view in the IT opening. A lot will depend on Thursday and what the Supreme court says but suffice to say that telcos will have to pay up; either lump sum or in a staggered manner. The remittance is not going to go away. Do you think it impels smell to stick with the likes of Bharti and Reliance and avoided Vodafone Idea or do you think there are enough amplifications to be made in Voda Idea as well? I study the work requires eschewed it solely from a trading attitude. If there is a favourable outcome, you should ask yourself three questions. One is the debt. The AGR dues are in excess of Rs 1 lakh crore. So how much capital will the promoter imbue? You is not simply need asset to service debt and AGR, you need capital to invest in future technologies. Second, what has the Vodafone customer and user experience been in 22 tele haloes with differing densities? And third plainly is the verdict. So you might get a tactical call. My gut probably tells me that you will probably have a more truncated period and not 20 years with some kind of security and some more constituent pays which might give you some tactical sell. But you are right. It is good to stick with Bharti. I see Bharti will be the dark horse. We have determined how the ARPUs have gone up to Rs 150, which is the best they have got in the last four or 5 year. The handling is talking about Rs 200 ARPU in the short run and targeting a much higher ARPU in the medium term. At some quality, some global technology firm will check into Bharti as well. Also, the fact that their African business seems to be doing well despite the headwinds of dollar and crude regard the volatility, the 4G add-on continues to be good. The mobile traffic data is stretching. So telecom is one clear winner in this post-Covid world. I would stick with Bharti; retain buying and accumulating Bharti at various grades. I think there is still a lot of upside left.

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