Anup Maheshwari, Co-founder and Chief Investment Officer, IIFL AMC, sees enough money-making opportunities arising out of the government’s continued focus on manufacturing. However, he believes there certainly are some opportunities that are yet to be baked in by the market.
So far India has been a services-dominated economy and even the index reflects the same.
“Around 50 percent of the index is still financials and Information Technology which is more like a service-driven economy. So manufacturing is still a smaller part of the index as compared to what could be if such a cycle were to play out,” Maheshwari said at a Crystal Gazing Summit and Awards 2023, organised by PMS AIF WORLD.
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He explains that in phases of a correction, weaker players drop out while strong ones gain more strength. Meanwhile, the market identifies big beneficiaries and their capability to scale operations. Because of this, there will be an expansion in market capitalisation, he elaborated.
Considering the manufacturing theme is a multiyear one, a lot of capitalization has to be built into the market as this has not been completely captured yet from the stock market perspective, Maheshwari said.
He thinks that both, new listings and existing public companies would help expand market capitalization.
Nonetheless, he thinks there will be enough money-making opportunities in the market.
