Aniruddha Sarkar On Indian Stock Market: Crude oil prices sustaining above the $100 per barrel mark could become a concern for Indian equities, but the recent surge in oil prices is temporary and does not alter the broader market outlook, according to Aniruddha Sarkar, Co-Founder and Chief Investment Officer at Equinova Investment Managers.
Sarkar told NDTV Profit that crude prices in the $85-$100 per barrel range are already priced into markets, while a sustained move above $100 could be concerning. However, he said there has been no change in his optimism on Indian markets, with domestic macros and corporate earnings remaining strong.
Underweight On Private Banks, Bearish On IT
Sarkar is underweight on private banks and bearish on the IT sector, indicating a cautious stance on both segments.
On the other hand, he remains extremely overweight on defence and engineering sectors. He expects exports in the engineering and ancillary space to see a boost.
Extremely Careful On Data Centres, AI
Sarkar advised investors to be extremely careful around data centres and artificial intelligence.
In the power sector, he expects bouts of price acceleration. He also believes the scarcity premium in companies such as ESDS may continue.
Festive Season To Boost Demand; Auto Sales May See Softness
Sarkar expects the festive season to boost demand across sectors. However, he sees some softness in auto sales in the next quarter.
He also said the NSE listing could provide a sentiment boost for investors.
'Inflation Is The Big Elephant In The Room'
While Sarkar remains optimistic on markets, he flagged inflation as a key concern, saying, "Inflation is the big elephant in the room."
Despite the inflation risk and elevated crude prices, he believes Indian macros and corporate earnings remain strong. He also reiterated that the recent surge in crude prices is temporary.
Aniruddha Sarkar is co-founder and chief investment officer (CIO) at Equinova Investment Managers, with around 19 years of experience across portfolio management, alternative investment funds (AIFs) and equity advisory. He holds a Bachelor's degree in Commerce and an MBA in Finance.
Over the past decade, Sarkar has delivered a 20%+ CAGR, with around 6.5% annualised alpha over the BSE 500 TRI, according to Equinova. His investment approach focuses on identifying high-quality businesses and long-term wealth creation across market cycles.
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