We continue to be positive on sectors such as Financials, Telecom, Discretionary Consumer, Defence and certain pockets of Industrials. We also like to select new age companies which have delivered high growth through disruption and have started to deliver on profitability through scale and efficiency.
Globally, what’s your view on the AI trade? Does it have more steam left, or is it already in bubble territory?
No one knows for certain, but what is clear is that the AI infrastructure buildout is real, with global AI capex expected to cross $1 trillion. Companies positioning themselves along this infrastructure value chain remain on solid footing, and we continue to view this segment favorably. What remains uncertain, however, is the extent to which tangible productivity gains are currently being realised by end-user enterprises. This adoption phase is still evolving. Over time, as enterprises, labor markets, and regulators adapt, the dynamics of this trade may shift significantly.
As a strategy, would it be wise to cut equity exposure and diversify more towards bonds, gold, and silver?
We have always maintained that asset allocation must be tailored to individual risk profiles and investment horizons. In this context, a well-diversified portfolio consistently delivers a superior risk-adjusted return profile. Equity markets have indeed experienced a correction in recent months, driven by escalating geopolitical uncertainties and macroeconomic friction.
However, we have been positively surprised by the underlying resilience of the Indian economy and corporate earnings. While tactical shifts into gold, silver, or fixed income can help hedge near-term volatility, we maintain strong conviction in the structural, long-term growth potential of Indian equities
Disclaimer: View and outlook shared belong to the respective brokerages/analysts and are not endorsed by Business Standard. Readers’ discretion is advised.
