HSBC fund manager bullish on manufacturing, cautiously optimistic on new-age companies

From having little interest in finance to currently managing assets over Rs 43,000 crore, Cheenu Gupta's professional journey is quite the story. Though she started as a coder, a chance meeting with the then chairman and managing director of UTI Mutual Fund in a competition during her MBA days kicked off her career in the mutual fund industry. Currently, the Fund Manager - Equities at HSBC Mutual Fund oversees several schemes, including the three-star rated HSBC Large & Midcap Fund and HSBC Midcap Fund. In this interview, Gupta shares her insights on the current market landscape, stating that "only select stocks can continue to deliver earnings in an expensive market." According to her, there are still opportunities in sectors emerging from downturns, emphasising the importance of picking the right stocks. Below is the edited transcript. Indian equities have been hitting new highs frequently, but with global macroeconomic uncertainty brewing, do you think this rally is sustainable in the near term? What market factors or risks concern you the most in the current environment? I believe that mid-, small- and even large-cap companies have outperformed in recent years. Nifty 50 has delivered good returns versus the global benchmarks. Clearly, the country's macroeconomic conditions have improved significantly. The current account deficit is in a very healthy range, and there is currency stability. Based on all these parameters, I believe the country is at a pivotal point where our per capita income will significantly increase in the upcoming decade. Even when we examine the policy measures and reform exercises, they have progressed positively. Therefore, from a broad perspective, everything appears to be good. However, when it comes to valuation, I agree with you that we are at a relatively higher valuation, and that creates some discomfort. High valuations typically lead to increased volatility, a trend I believe the markets have recently exhibited. So, at this point, I think