HSBC’s Duggal Buying Defensive Growth Stocks

India’s biggest bull, Sanjeev Duggal a Sr. Fund Manager with HSBC AMC who was the first to ask his investors to cash out in December-2007 has said that India is all set for long term growth and is reducing cash position to BUY into defensive growth stocks.

Mr. Duggal said,

Solid domestic consumption, favourable demographics and increasing investment in infrastructure remain the key growth drivers for India. The Indian economy is also less vulnerable to external shocks than other economies in Asia because exports account for less than 15% of the country’s GDP.While macro conditions are expected to remain tight in the near term, most of the bad news should have been discounted.

As the recent interest rate hikes need time to take effect, inflation may rise further before peaking later this year, and then fall.

We have already initiated coverage on HSBC Equity Fund through SIP options and consider top-ups on market corrections.