The latest reduction in goods and services tax (GST) had led to hopes of a consumption revival in India, particularly for carmakers.
The Nifty Auto index is among the top three sectoral gainers in 2025, but the bulk of the nearly 17% rally started after early August in anticipation of the GST cuts, which eventually took effect in October.“We like the two-wheeler space, particularly the electric-vehicle (EV) players,” Badshah said. In four-wheelers, the fund focuses on companies with strong model pipelines. His fund has limited exposure to the commercial vehicle segment, but maintains positions in auto components.
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On Gold and SilverBadshah said the fund has maintained around 20% allocation to gold and silver, with an increase in allocation for silver. “We were almost fully in gold a few months back,” he said. “We’re now more like 12:8 between gold and silver.”
Gold price is up nearly 52% in the last one year, largely driven by a spike in demand from global central banks looking to diversify their reserves. “Gold now probably forms about 35% of global reserves, up from around 10% three years ago,” Badshah highlighted.
“We think precious metals could outperform equities in the near term, but not at the 30-40% levels seen in the recent past,” he added.
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