The fund house continues to favour segments within consumer discretionary, especially those linked to hospitality, travel, and tourism.
However, Kumar noted that traditional FMCG continues to lag, with both rural and urban demand yet to reflect a meaningful uptick. “For now, we will still stick to our conventional themes, but at some point, the traditional consumers, will also become attractive once we see uptick in earnings estimates,” he added.Financials continue to be a core overweight in Axis Mutual Fund’s portfolio. The fund sees mid-cycle valuations and improving fundamentals as supportive for further gains. Kumar said the fund is well-positioned across the financials spectrum, with significant exposure to both private banks and NBFCs.
Read Here | What fund flows reveal about the next global market bets: EPFR’s Cameron Brandt
On the global front, Kumar acknowledged the need to monitor ongoing policy actions in developed markets. However, in the near term, the fund remains constructive on the power transmission and distribution segment.
With valuations in this space still reasonable, Axis Mutual Fund sees it as a relative safe haven in an otherwise expensive broader market.
In the auto sector, the fund has moderated its stance over time. Axis Mutual Fund has trimmed its exposure selectively, with continued but focused investments in both two-wheeler and four-wheeler OEMs that are better positioned in the current environment.
Kumar pointed out that auto sales, earnings expectations, and valuation trends have all moderated, prompting the fund to adopt a more selective and cautious approach in the sector.
Watch accompanying video for more
Catch all the stock market live updates here
