India's investment landscape is undergoing a major shift: high-growth potential lies outside traditional indices and in newer spaces, according to Prateek Agrawal.
"The indices today represent more of Old India," said the chairman and managing director of Motilal Oswal Asset Management Co. in a televised interview with NDTV Profit. Alpha—the ability to beat markets—will now emerge from newer spaces like renewables, electronic manufacturing, luxury consumption and new-age tech, he pointed out.
"In the '90s, software created alpha. In the 2000s, it was automobiles and telecom. Today, for the first time, we can build a diversified portfolio purely from emerging spaces, with sustained high growth potential," Agrawal said.
This shift marks the dawn of the 'New India Story', said Agrawal.
Q3 Set For Revival
After a lackluster first quarter and challenging second quarter, Agrawal expects the third quarter to mark a turning point for the economy. "We've seen the worst in Q2. Now, with government spending set to pick up and the benefits of good rains kicking in, Q3 and Q4 will be significantly better," he explained.
Fiscal deficit—at just 26% in the first half—will also fuel a surge in government-led activity, said Agrawal.
Shifting Focus
Agrawal advised investors to steer clear of staples and food companies, which he predicts will disappoint, and focus instead on sectors driven by government capex and evolving consumer trends. "Luxury consumption, be it houses or air conditioners, will drive growth," he added, highlighting the strong performance during the festival season across listed and unlisted companies.
"This is the time for alpha. It's not an index story, it's a New India story," he said, urging investors to align their portfolios with the country's evolving economic trajectory.
As Staples Waiver, Pratik Agrawal Shares His Bets | Watch
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