Aegon Religare favours power sector stocks

With six in every ten Indians under the age of 30 years, demand for financial products such as insurance and loans would pick up, while a savings rate of more than 30% would largely fund the country's investment requirements.

"A huge wave is coming there," Ghosh said. "We clearly believe that financials has got fantastic opportunity."

Wary of it, Realty

"We are quite sure about the domestic-driven economy but not really confident or sanguine about the global growth related stories," he said. He is underweight in software exporters.

Inventory restocking was behind growth in large parts of the developed world, while unemployment data was not encouraging yet.

"The reality is that three fifths of the globe are going nowhere so far," he said, referring to large economies.

The fund manager is also wary of Indian real estate firms and holds no exposure to the sector on valuation concern.

"I don't understand the real estate. The net asset value or any total value calculation of real estate stocks, we don't have the full confidence that it is reflecting the underlying value of the stock," he added.