Avoiding Pain: Expert's Take On Sectors With Unattractive Valuations And Investment Risks

In today's market, where are valuations still considered unattractive? On Business Today TV's "Market Guru," Dinshaw Irani, CEO, Helios Capital, shares his perspective on sectors that remain overvalued. He identifies FMCG as the first area of concern, despite years of stagnant performance, with PEs still lingering in the 45-60 range. Dinshaw Irani believes that government policies will favour discretionary spending over staples, limiting FMCG's upside. Secondly, he points to the four-wheeler auto sector, arguing that the recent rally was overdone and is now experiencing a correction. He highlights potential trade tensions with the US, particularly regarding auto duties, and the competitive landscape of the SUV market. Dinshaw Irani also expresses concerns about the paints sector, despite its recent underperformance, citing stress and inflated valuations. Lastly, he remains cautious about the IT sector, even though it hasn't seen significant gains, due to high valuations and the disruptive potential of AI. He concludes that these sectors are areas where Helios Capital is not comfortable investing, highlighting the importance of avoiding overvalued segments.