Indian shares still expensive despite correction: Raunak Onkar, PPFAS

Indian markets may be due to a correction phase, but the ratings remain stretched, making new investments difficult, according to Raunak Onkar, research head and fund manager at PPFAS Mutual Fund. Speaking with et now, Onkar said that the fund house uses a “wait -and -see” approach and uses money selectively in areas such as banks in the private sector, car shares and international shares, while they have higher cash levels for the time being.

“Despite the correction, the market is not useful to justify the lukewarm growth that we see in certain sectors. So we prefer to wait for better opportunities,” he said.

American rally driven by technical giants, not broadly based

Onkar also emphasized the risk of concentration on the American markets, where the S&P 500 and Nasdaq have reached record heights, largely because of the “Magnificent Seven” Mega-Cap technology shares. “These are not only technology companies-they represent long-term trends such as digital advertisements, cloud services, e-commercial and semiconductor innovation, he explained.” The index reflects the cash flow and profit growth as stock rates. But one must be careful with valuations. “

Although Indian companies are still mainly users instead of makers of advanced technology, Onkar pointed out that the strong talent base of India in chip design and engineering could eventually help the country to play a greater role in the worldwide technical supply chain.

Car & EV Outlook: Long-Term Story Intact

The GST reset and EV -adoptite trends were also in Focus. ONKAR said that PPFAS recently added no new car holdings, but still has important interests in Mahindra & Mahindra and Maruti Suzuki. “EV adoption should not be assessed by quarterly news current. We have switched from almost zero indigenous technology to meaningful production to a meaningful expansion three years ago, supported by the power group, supported, supported by the power of power and four Whiel-infrastructure upgrades,” he said.

Onkar added that EVs will continue to grow in relevance despite the price determination and that ice leaders who transfer to EVs will be crucial beneficiaries.

Debts and hybrid funds that appeal

With share valuations increased, debts has become an attractive option, according to Onkar. PPFAS has parked some money in short -term debt instruments such as CDS and CPS.

“Investors must again assign between equity and debts through hybrid funds to re -balance portfolios. It is a good time to add exposure to debts after the one -way movement of recent years,” he noticed.

Consumer stocks still too expensive, except ITC

ONKAR said that the space of consumer goods remains overvalued despite GST cuts and policy support. The only exception in the PPFAS portfolio is ITC, which was collected during the COVID-19 crash.

“ITC is still being traded against reasonable ratings, has solid cash flows and a stable dividend policy. Other players from the consumer remain too expensive for our comfort,” he explained.

Defense and production: Judge direction, but needs patience

Onkar insisted on investors not to combine stock rallies with company fundamentals in sectors such as defense, railways and shipbuilding.

“These sectors are going in the right direction, but the expectations can be the actual delivery for. After a while, indigenous technology and strong order books will translate into cash flows. But patience is required,” he said.

Go for a selective patient approach

In summary, ONKAR repeated that PPFAs remain careful until the valuations become more attractive. “Markets are expensive, even after the recent correction. We prefer to keep cash and wait for opportunities, while they selectively add high -quality companies to reasonable ratings,” he said.