“Someone’s got to take that hit somewhere,” he said, pointing to margin pressure across sectors. “We don’t think it’s a very broad-based market,” he added.
He expects manufacturing-linked sectors to be better placed, especially those with global competitiveness. Areas such as metals, pharmaceuticals and automobiles remain key allocations, supported by exports and scale advantages.
For the full interview, watch the accompanying video
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Andrade also indicated no exposure to IT, citing ongoing weakness, while financial exposure is focused on select non-banking financial companies (NBFCs) benefiting from recapitalisation trends.
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On commodities, he said the cycle is not early, but profitability could improve as both volumes and prices support earnings. He added that metals are now more of a balance sheet repair story driven by cash flows.
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