UBS Wealth anticipates growth in industrials on capex cycle recovery
Suresh Tantia, Chief Investment Officer-Strategist at UBS Wealth Management, South Asia Pacific, Singapore, shared his outlook on Indian market and specific sectors.
UBS Wealth Management is setting its sights on India's industrial sector, anticipating significant growth driven by a revival in capital expenditure (capex). Suresh Tantia, Chief Investment Officer-Strategist at UBS Wealth Management, South Asia Pacific, Singapore, recently shared insights with CNBC-TV18, discussing the potential of various sectors in the Indian equity market.
Tantia pinpointed the industrial sector as a primary area of interest, expected to benefit substantially from the ongoing capex recovery in India over the coming years. He also noted the positive prospects for the financial sector, despite some recent underwhelming performances. "On the consumption side, we maintain a positive view on financials due to strong credit growth," Tantia explained.
He expressed a balanced view on the banking sector with interest in both private and public sector banks. While acknowledging the impressive performance of the auto sector, he indicated UBS Wealth Management's current strategy is not to actively pursue these stocks at their present valuation levels. The focus, instead, is on identifying companies with potential for multi-year growth, particularly in industrial and financial segments.
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Tantia also shed light on what global investors are currently seeking in the Indian market: consistent growth, policy stability, and a willingness to pay a premium for high-quality investments. He acknowledged that some investors have raised concerns over the Indian equity market's relatively high valuations. However, he stressed that the appeal of investing in quality Indian companies continues to attract global interest.
For more details, watch the accompanying video
(Edited by : Shweta Mungre)
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