Kotak’s Nilesh Shah sees opportunities in banks, cement, healthcare

Nilesh Shah, MD of Kotak Mahindra AMC, which manages nearly $5 billion in assets, believes investors should shift their approach to reacting sensibly to events rather than trying to predict them.Speaking to CNBC-TV18, Shah said there are currently too many moving parts, from rising oil prices and geopolitical tensions to currency and rate volatility, weighing on corporate earnings and could continue to do so until energy markets stabilise.

Shah is leaning on a bottom-up approach, focusing on companies that can withstand the current disruption and sees selective opportunities across sectors.
Banking and financials, he says, still offers pockets of opportunity, supported by steady credit demand. Cement and materials is another sector where valuations now look reasonable despite cost pressures. Healthcare and hospitals is also emerging as a relatively good defensive play.
Read Here | Neeraj Seth sees mixed outlook; AI strong, but oil risk still unresolvedShah said growing uncertainty in IT sector with the rise of artificial intelligence should not lead to a blanket negative outlook. Companies that adapt to AI by offering faster, cheaper, and more efficient solutions could gain market share, while others may struggle.

The RBI, he said, still has room to support growth, even if rate cuts are limited. Liquidity management, better credit transmission, and potential policy tools like credit guarantees could be key levers.

For the entire discussion, watch the accompanying video

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