Tawakley highlighted that sectors most sensitive to economic cycles—industrials, capital goods, banks, and autos—are likely to benefit first as recovery gathers pace. While cement and auto companies have already seen some gains, he sees more potential in industrials and capital goods for the near term.
The housing sector remains central to India’s growth story. Although sales have slowed in recent months, incentives and price adjustments by developers are expected to revive activity. Housing drives demand for construction materials, labour, and services, making it a critical barometer for broader economic recovery.Fiscal measures introduced in the budget and GST 2.0, are seen as pro-spending. Tawakley explained that increased household resources could lead to both consumption and investment, such as purchasing larger homes or bringing forward housing investments, which in turn supports economic activity.
On portfolio strategy, Tawakley maintains a cautious stance on overvalued segments. Tech and metals sectors face headwinds due to global demand pressures and competitive shifts, while cyclicals like industrials and capital goods remain the preferred focus.
As the economy regains momentum, the combination of supportive monetary policy, robust corporate balance sheets, and targeted fiscal measures positions India’s cyclical sectors for a meaningful recovery, with banks uniquely poised to capitalise on the evolving market dynamics.
For the entire discussion, watch the accompanying video
