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Axis MF's Devalkar Backs Financials, Cautions on IT Despite Correction
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CNBC TV18•30-09-2026, 13:06
Axis MF's Devalkar Backs Financials, Cautions on IT Despite Correction
- •Shreyash Devalkar, Head of Equity at Axis Mutual Fund, sees strong investment opportunities in Indian financial services due to favorable valuations, healthy asset quality, and improving credit growth.
- •Axis MF remains constructive on lenders and expects manufacturing-related themes to stay in focus.
- •Devalkar views the IT sector as better suited for tactical trades than long-term investments, citing weak earnings growth and uncertainty from AI.
- •Axis MF is reviewing opportunities in the insurance sector following recent regulatory developments, though it's too early to conclude.
- •The fund favors manufacturing-linked themes like power equipment, capital goods, and EMS, while balancing holdings with financial services and platform businesses.
Key Questions Answered
Axis Mutual Fund backs the financial sector due to favourable valuations, healthy asset quality across the board, and improving credit growth.
Shreyash Devalkar maintains a cautious stance on the IT sector, viewing it as better suited for tactical trades rather than long-term investments due to weak earnings growth, sub-5% growth rate concerns, and uncertainties surrounding artificial intelligence.
Axis Mutual Fund continues to favour manufacturing-related themes such as power equipment, capital goods, electronic manufacturing services (EMS), auto ancillaries, and contract development and manufacturing (CDMO) companies.
