Motilal Oswal AMC Prefers Fintech, New-Tech, Defence On High Growth Potential: CEO

New technologies, financial technologies, defence, and renewables are now part of Motilal Oswal Asset Management Co.'s portfolio preference. This is because these are alpha spaces—emerging spaces with higher growth potential, said Managing Director and Chief Executive Officer Prateek Agrawal.

Investors should look for segments which have not less than or equal to 2% earnings growth. If markets follow companies which are delivering 2% earnings growth, then there will not be any alpha, Agrawal said.

As far as Indian markets' overall performance is concerned, there is potential for upside growth. Unless, volatility rises in the dollar index, the Indian markets will do their best, according to the CEO.

Domestic investors drive Indian markets' growth; they are returning as the currency volatility has reduced now, he said. During January and February, interest rate and currency volatility impacted Indian markets, which caused both levered players in offshore and onshore to square off their position in a short period of time. 

During January and February, the NSE Nifty 50 declined 6.43%. The index hit its lowest level of 21,743.65 on April 7, 2025, according to Bloomberg.

In April and May, it gained 6.23% as the US and China decided to reduce tariff on each other, which offset most of the fears investors had regarding the global trade ecosystem.

Emerging markets are likely to appreciate the weakness in the dollar index at the moment. Moreover, oil prices fell sharply before the global slowdown could happen, which compensates for losses in exports on account of recession fears, Agrawal said.

The dollar index touched two-year high of 110.18 on Jan. 13, ahead of Donald Trump taking charge as US President. However, as soon as he started imposing tariffs on trade partner countries, the dollar index started to erase gains and fell to a three-year low of 97.92 on April 21.

The brent July future fell to a four-year low of $58.04 a barrel on April 9, amid recession fears and rising supply.