Kotak's Harish Krishnan views this sector as a 'dark horse'

He also emphasized the improved financial health of Indian metal companies, which now carry significantly less debt compared to previous cycles.

This resilience minimises risk and supports sector stability.

Additionally, the current low ownership levels in the sector suggests an attractive risk-reward ratio, making it a compelling option for medium-term investment, according to Krishnan

Krishnan prefers non-ferrous metals in the long term due to their widespread use across various industries, particularly amidst a global trend towards electrification.

Among other sectors, he finds opportunity in the pharmaceutical and healthcare sectors, “We are looking out in terms of price stability in the generics basket, as well as in terms of API correction. So I think that's the area of opportunity for us.”

Krishnan is cautious on railways and defence. While there are positive developments such as export opportunities in the defence sector and the government's focus on indigenisation, he believes that current valuations may limit further medium-term value creation.