Companies with exposure to geopolitical themes continue to deliver, while switchgear and electrical equipment makers are well-placed to perform, according to Vaibhav Sanghvi of ASK Hedge Solutions.
Speaking on the broader market outlook, Sanghvi told NDTV Profit that he remains optimistic on the industrials and contract development and manufacturing organisation (CDMO) segments. He also expects the manufacturing space to remain a strong structural theme going forward.
On the consumer sector, Sanghvi said he is still evaluating the space before taking a definitive view.
He added that financials will continue to have a modest allocation in ASK Hedge Solutions' funds, while stressing that earnings growth will remain the most important metric for stock selection over the next two years.
Sanghvi also expects investments in the data centre ecosystem to accelerate, estimating that data centre capital expenditure could rise to $80-90 billion over the next four to five years.
On the banking sector, Sanghvi said further erosion in net interest margins (NIMs) of private sector banks is likely.
He noted that while there was a very positive sentiment around private banks ahead of the June quarter earnings season, the Street appears to have been disappointed by the NIM numbers reported so far.
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