Top market experts at CNBC TV-18 Global Leadership Summit see opportunities in financials, banks, construction segments

Strategists see selective opportunities in financials, construction, and IT.

Top market strategists believe that while India’s equity markets have entered a mature phase, select pockets such as financials, construction, and certain technology plays could still offer meaningful returns.

Speaking at CNBC-TV18’s Global Leadership Summit, Neelkanth Mishra, Head of Global Research, Axis Capital, said financials and construction remain promising areas. “I think financials, construction, and construction proxies is where we can find return,” he noted. Mishra also sees potential in private technology firms. “Hardware tech among current listed stocks is very bubblish, but in the private space, you will see a lot more investment options,” he said.

S Naren, Chief Investment Officer at ICICI Prudential AMC, described the market as a “mature bull phase,” where investors need patience and selectivity. “There have been such good runs in India that anything which had to be discovered got discovered,” he said. “We buy wherever we find that the seller has got frustrated with holding stocks for two or three years with no returns.” Naren added that his team looks across sectors for such opportunities, noting recent gains in oil and gas stocks.

Ridham Desai, Managing Director at Morgan Stanley India, said banks offer strong value. “Banks look very attractive. Valuations are below history, earnings are below history, margins are stabilising and likely expanding,” he said, calling lenders “the place to be.”

Desai also sees potential in IT services, despite the sector’s current challenges. “It’s not so simple that AI is going to take over coding,” he said, pointing out that much of the AI monetisation “is taking place here in India.” He noted that the real pressure on IT companies is coming from global capability centres (GCCs), which have reduced outsourcing to Indian vendors.

Together, the strategists see a more selective market ahead, one where patience and disciplined stock picking may separate returns from frustration.

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