sectors to avoid: ETMarkets Investors’ Guide: Why chemical sector should be on top of your avoid list | The Economic Times Podcast

Chemical sector has been the darling of investors over the past three years. The sector has benefited from the decline of Chinese manufacturers, strong global pricing environment and investment by Indian producers on high-end products.

Recently, though, things are looking down for chemical companies. Their margins are shrinking due to erosion in global chemical prices, raising doubts over their rich valuations.

ETMarkets’ Chiranjivi Chakraborty caught up with Srinivas Rao Ravuri, chief investment officer at PGIM India Mutual Fund to understand if it is time to avoid chemical stocks altogether, what’s his outlook for 2022 and why mutual funds are buying stocks in hordes.

Listen in!

Q. We saw one of the biggest inflows from DIIs in a long time in November plus record SIP inflows. Are mutual funds consistent buyers in this market and why?

Q. 2021 is ending on a bit of a shaky note compared to the rest of the year. What has been your biggest take away from this year?

Q. Given the emerging concerns around inflation, Fed tapering etc. Would it be prudent to assume that Indian equities may see a considerable moderation in returns in 2022?

Q. If you were to pick one sector to invest in 2022 and one sector to avoid/book profits in, what will they be?

Thank you Chiranjivi and Mr. Ravuri for a very intriguing conversation.

That’s all in this week’s special podcast. Do keep checking this space for more interesting content and take time out to follow our market podcasts twice every day. Stay safe and Happy Weekend!