Many funds are either cutting overweight or even going underweight on the segments, he said.
Bhasin highlighted that global investors are also concerned about weak consumption trends in India and the lack of significant infrastructure investments in the Union Budget 2025.
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“Perhaps it is the time right now to look at some consumption names which will get benefit from the income tax cuts. Consumption, which helps the middle and bottom of the pyramid; discretionary, electronics, durables and even entry-level motorcycles to be benefited. So hence, we have advised investors to increase slight weightage in consumption names,” he said.Bhasin was overweight on IT stocks earlier but has now reduced exposure and shifted focus more towards fast-moving consumer goods (FMCG), while also pulling back slightly from capital goods and construction stocks.
In the financial sector, Bhasin thinks banks are performing well compared to other industries, with a strong share of profits relative to their market capitalisation.
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“We have been advising, for a while now, to be overweight on banks, especially banks like State Bank of India, Axis Bank followed by ICICI Bank. So, banks are something we are advising overweight. Not so in the non-banking financial companies (NBFCs) given that there are credit risks in many segmental NBFCs,” he added.
For the entire interview, watch the accompanying video
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