Financials, Banks, and Construction in Focus as Experts Share Insights at CNBC-TV18 Global Leadership Summit

Top Market Experts at CNBC-TV18 Global Leadership Summit See Opportunities in Financials, Banks, and Construction Segments

India’s equity markets have entered what experts describe as a “mature bull phase”, with select opportunities still emerging across financials, construction, and technology sectors, according to top strategists speaking at the CNBC-TV18 Global Leadership Summit.

The discussion, featuring leading voices from Axis Capital, ICICI Prudential AMC, and Morgan Stanley India, painted a picture of a market that remains structurally strong but increasingly selective. While valuations across several segments have run up, experts believe that banks, financial services, and infrastructure-linked sectors could still deliver meaningful returns over the next few years.

Neelkanth Mishra: Financials and Construction Offer Compelling Value

Neelkanth Mishra, Head of Global Research at Axis Capital, identified financials, construction, and construction proxies as promising investment areas. He highlighted that India’s ongoing infrastructure expansion continues to generate multi-sector benefits, from capital goods to cement and housing.

“I think financials, construction, and construction proxies are where we can find returns,” Mishra said. “The banking sector is well-positioned to benefit from rising credit demand, while the construction ecosystem is seeing a steady flow of government and private projects.”

Mishra also shed light on the technology sector, noting that while listed hardware-focused tech stocks appear “bubblish,” there are emerging opportunities in private technology firms, particularly those engaged in deep tech and automation. “In the private space, you will see a lot more investment options,” he added, hinting at a long-term shift toward innovation-driven businesses.

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S Naren: India in a Mature Bull Phase, Patience Key for Investors

S Naren, Chief Investment Officer at ICICI Prudential AMC, described the Indian stock market as being in a “mature bull phase,” one where investor selectivity and patience have become crucial.

“There have been such good runs in India that anything which had to be discovered got discovered,” Naren observed. He explained that his investment philosophy focuses on areas where sellers have grown impatient — typically stocks that have gone through prolonged underperformance despite solid fundamentals.

“We buy wherever we find that the seller has got frustrated with holding stocks for two or three years with no returns,” he said. Naren also pointed to recent strength in oil and gas stocks, suggesting that cyclical sectors could continue to surprise on the upside.

According to Naren, this market environment demands discipline. “This is a time for careful stock picking, not chasing momentum,” he emphasized, highlighting that value-oriented investing will likely outperform in the next phase of the market cycle.

Ridham Desai: Banks Still ‘The Place to Be’ as Valuations Turn Attractive

Ridham Desai, Managing Director at Morgan Stanley India, struck a bullish tone on the banking sector, calling it one of the few pockets of relative undervaluation in today’s market.

“Banks look very attractive. Valuations are below history, earnings are below history, margins are stabilising and likely expanding,” Desai noted. He added that despite short-term volatility, lenders remain fundamentally strong and well-capitalized to support India’s next phase of growth.

Desai described banks as “the place to be,” citing improving asset quality, robust loan growth, and expanding credit demand across retail and corporate segments. He believes that financials could outperform broader indices, especially as inflation stabilizes and credit momentum picks up.

Selective Optimism in IT: AI Challenges but India Retains Edge

While the IT sector has faced earnings pressure amid global uncertainty, Desai maintained that the long-term story remains positive. He dismissed fears that artificial intelligence (AI) would immediately disrupt coding and software services.

“It’s not so simple that AI is going to take over coding,” he said. “In fact, much of the AI monetisation is taking place here in India.” Desai pointed out that the real challenge for IT services comes from the rise of Global Capability Centres (GCCs) — in-house innovation hubs set up by multinational corporations — which have reduced outsourcing to Indian vendors.

Despite these headwinds, he sees India retaining a key role in the global technology supply chain, driven by its skilled workforce and adaptability to new digital trends.

Experts Agree: The Next Phase Requires Patience and Precision

Across the discussion, one theme was clear — India’s bull market is evolving from broad-based to selective, requiring investors to adopt a disciplined and patient approach.

Experts agreed that while large-cap valuations appear stretched in some areas, financials, construction, infrastructure, and selective technology stocks offer opportunities for those willing to look beyond short-term volatility.

As India’s economy continues to expand, market participants expect earnings momentum to shift toward sectors with structural demand — particularly banks, capital goods, and infrastructure-linked plays.

“The Indian market is no longer about buying everything,” one strategist remarked. “It’s about identifying where real earnings growth will come from over the next three years.”

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