With equities market weak on concerns about weakening rupee against dollar and more capital control measures, fund managers believe that stock picking in sectors that have decent export prospects and less regulatory interventions will be the right step to go ahead, according to a media report.
The rupee dropped to a historic low beyond 62.45 per dollar on Monday, despite RBI's (Reserve Bank of India) efforts to prevent the outflow of dollars. Both the government and the RBI have said that a stable rupee is at the top of their agenda. So far in this fiscal, the domestic currency has lost 12%.
Nifty is trading at its lowest level in 2013 and has broken its April 2010 low of 5,477.
Government bond yields remained at 21-month highs with the 10-year bond at 8.95%, up 7 basis points.
IDBI Mutual Fund CEO Debashish Mallick said that companies with sound export prospects like information technology, pharma, agriculture along with companies with overseas subsidiaries, will be on our radar, the report added.
He said given the good monsoons, companies working in the agriculture space are also likely to do well, the report further said.
At 11:43 AM (IST), S&P BSE Sensex is 202 points down at 18,395, while 50-share Nifty is 72 points down at 5,435. BSE Mid-cap is 39 points down at 5,399, whereas BSE Small-cap is 30 points down at 5,238.