Nilesh Shah: Yes, and as portfolio managers we need to continuously keep tweaking and allocating and reallocating the capital that we essentially manage. Some of the themes which have really come up in recent times, …they probably have come up in the last few weeks or few months. But some themes look very strong.
Number one is some of the tier-II lenders seem to be in great shape, the tier-II private sector lenders. Of course, the larger banks will do well. But some of the tier-II banks, some of the specialised lenders are going to do incredibly well.
Challenges of asset quality are behind them. They seem to have managed their ALM (asset and liability management) really well.
Of course, the nominal growth of the GDP, which is after a very long time we have entered into basically a double-digit nominal GDP growth rate, which means better times in terms of demand for credit. So, on the whole, I think that’s one fact which is looking good for the medium-term.
So, the second one, of course, which has been the flavour of the season is the defence pack, and what looks to be a flavour of the season.
My view is that this is going to be the main course for the decade ahead. Multiple drivers, be it be Atmanirbharta, indigenisation, exports, more participation by the private sector, our geopolitical imperatives and all of this and India in a way gearing up to just not be a prosperous nation but to be a strong nation.
These are some of the compulsions, some of the imperatives, some of the drivers which make defence an incredible growth opportunity for not just the next one Samvat, but for the next decade. So, that’s the second big area.
The third area, of course, is around capex, manufacturing. That’s essentially the space which is going to do well. So, these are some of the businesses, sectors, themes which look good for the medium term, not just for the next one Samvat but for the next two to three years as well or maybe even for a decade. These are some of the things which look incredibly interesting.