Sanghavi said IT companies are facing mixed signals as investors assess the impact of AI on future earnings while also recognising AI’s potential to improve productivity and create new business opportunities.
However, he advised investors seeking greater earnings visibility to wait for one or two more quarters before taking fresh positions.Sanghavi said India is increasingly becoming a bottom-up investment story rather than a macro-driven trade. He identified private banks alongside IT as sectors where depressed valuations offer scope for value creation.
He also remained constructive on manufacturing, saying government initiatives in electronics, semiconductors, aerospace and defence are creating long-term opportunities. According to him, India’s manufacturing sector also stands to benefit from improving competitiveness.”Manufacturing can remain that sweet spot,” Sanghavi said, pointing to continued policy support and investment across industrial segments.
Discussing defence, Sanghavi said the sector continues to offer a long growth runway as India’s push for self-reliance and rising export opportunities gather pace. He noted that Indian companies are increasingly supplying both domestic and overseas defence programmes while also becoming manufacturing partners for global players.
He also sees continued strength in premium consumption segments such as consumer discretionary and real estate, supported by rising incomes and the wealth effect among higher-income households.
Sanghavi said upstream oil and gas companies with volume growth offer an attractive investment case regardless of commodity price movements. While geopolitical tensions in West Asia remain difficult to predict, he believes company-specific growth drivers should be the primary investment consideration.
For the full interview, watch the accompanying video
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