The brokerage has become more constructive on financials as softer crude prices could help contain inflation, support the rupee and eventually lead to a lower interest rate environment.
Khandelwal said, “We believe that the larger banks will be the first big beneficiaries in the next six to 12 months, as inflation, rupee the interest rate environment cools off. The larger banks becomes a big overweight position for us led by the ICICI Bank and SBI in particular.”
Apart from financials, Systematix continues to favour manufacturing-related themes. The brokerage remains bullish on capital goods, electronics manufacturing and export-oriented industries such as textiles, supported by the ongoing China Plus One trend and increasing global diversification of supply chains.It also sees opportunities across sectors linked to India’s investment cycle, including defence, power and railways, where both large and mid-sized companies are expected to deliver healthy growth.
The brokerage’s positive stance comes after its recent investor conference, where around 30 companies from sectors including financial services, manufacturing, healthcare and consumption shared their outlook. Khandelwal said businesses have largely moved past the disruptions caused by supply chain bottlenecks, elevated inflation and tariff-related uncertainties.
Most companies participating in the conference indicated volume growth of 15-18%, reflecting improving business conditions and stronger demand visibility.
For the entire discussion, watch the accompanying video
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