Here's why Kotak Mahindra AMC is positive on capital goods space and defence sector

Kotak Mahindra AMC is positive on capital goods space and defence sector, Pankaj Tibrewal, senior executive vice president and fund manager-equity, told CNBC-TV18.

His rationale is that there is a strong momentum in the defence sector as countries looking to strengthen indigenous defence power given the geopolitical tensions.

“We are positive on the entire capital goods space and defence is one part of that. And we believe that manufacturing and we have been seeing this for almost last one-and-a-half-two years that we see early signs of revival on the manufacturing side and defence is one part of that,” said Tibrewal.

“Look at China, the defence growth has been much higher than their GDP growth. Look at the announcement by Germany and especially in India also, I think we are realizing that we need to be more ‘atmanirbhar’ in our defence side and the traction which we are seeing probably is unprecedented because companies, whether PSU or private sector are talking about strong momentum and pipeline over the next couple of years. So growth could be strong there,” he said.