Cheap Stocks Are Cheap For A Reason: Shankar Sharma Backs Growth Over Value

Ace investor Shankar Sharma remains firmly constructive on AI-driven and data centre-linked opportunities, arguing that India's most compelling growth stories lie outside benchmark indices. In an interview with NDTV Profit, Sharma said the global AI investment cycle continues to attract capital, reducing the appeal of traditional Nifty heavyweights that lack exposure to the theme. He warned investors against chasing seemingly cheap stocks and large banks purely on valuation grounds, contending that high-growth businesses deserve premium multiples. Instead, he favours small-cap and mid-cap companies linked to electrification, cables, optical fibre and broader infrastructure-tech themes benefiting from the AI boom.