I was looking through your top holdings and saw a lot of companies with names related to building materials, such as KEI Industries, Polycab, Greenpanel, Cera Sanitaryware, etc.
According to KR Senthilnathan, director of investments, NAFA Asset Managers prefer owning stocks in companies that manufacture building materials, like Greenpanel, as opposed to making direct investments in the real estate sector.
Falling rates would improve market potential for these businesses, with banks and other real estate-related equities performing well during the rate downturn since the rate hikes have mostly ended.
The home renovation industry is anticipated to expand by 13% to 15%, giving rise to equities like Green Panel, which have a respectable cash flow yield of 8.5 percent.