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India at turning point; auto, IT, pharma top bets: Rel MF

Sunil Singhania, CIO- Equity, Reliance Mutual Fund says financials and consumer-related stocks will be the key areas for the economy in the long-term.

Sunil Singhania, CIO- Equity, Reliance Mutual Fund believes the fundamentals of the Indian economy have turned positive in last few months and a pick-up is likely going forward. In an interview to CNBC-TV18, he says concerns relating to soaring inflation, currency and global crude oil prices have settled and India is at a turning point now.

Singhania personally manages a host of funds of which Reliance Growth Fund has given 65 times returns in 18 years and Reliance Small Cap Fund provided returns of 130 percent in one year.

Cherry picking his best bets, he says financials and consumer-related stocks will be the key areas for the economy in the long-term. He is bullish on the entire auto sector and prefers betting on consumer stocks over commercial vehicles. Defensives IT and pharma are also his favourites. He has significant weightage in tech stocks and finds large cap pharma stocks attractive.

The fund house is also focussing on largecap stocks in the power generation space. Singhania believes only four-five companies will survive in power generation business. Companies with higher capacities will give better returns and one can expect consistent returns over next few years, he adds.

Meanwhile, those looking to play the midcap story should adopt a selective approach and exercise some caution as some froth is seen in few midcap stocks.

In terms of assets under management (AUM), Reliance Mutual Fund is one of the biggest in the Indian MF industry. It manages funds worth Rs 120,000 crore.

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