He also prefers the capex-related themes as its next leg of growth will driven by more contract awarding. However, execution might be a worry, he noted.
He expects the banking sector to benefit from lower interest rates.
“Play the whole (banking) sector in the short-term, and then see which ones have outperformed, and then do your reallocation between private and public sector undertaking (PSU) banks,” he said.
He advises investors to carefully monitor risks in the mid and small-cap stocks.
In the two-wheeler space, Holland said, “In terms of Ola’s listing, we are all surprised at where the share price is, but it highlighted some of the undervaluation of the other two-wheeler companies in the sector who also have exposure in the EV sector.”
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Discussing his view on US interest rates, Holland said the US Federal Reserve should go with a 50-basis point cut, though the base case is 25.
He believes this would reassure the market that the Fed is proactive and address concerns about it being behind the curve.
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“So, I am not quite sure that the data they are following is giving them a good indicator of where the economy is heading, and that is what the market will grapple with. So, if it’s 50 bps, markets continue to move higher globally and for India too,” he added.
For the entire interview, watch the accompanying video
