According to reports from CNBC TV18, Shreyash Devalkar, Head of Equity at Axis Mutual Fund, maintains that financial services continue to offer one of the strongest investment opportunities in the Indian market. The fund house, which managed ₹39.34 billion in assets during the April-June 2026 quarter, remains constructive on lenders despite evaluating company-specific developments across the banking sector. Devalkar cited three key factors supporting the positive view: favourable valuations, healthy asset quality across the board, and improving credit growth. As reported by CNBC TV18, he explained that "if you look at the sector as such, the valuations are really in favour. Secondly, asset quality is actually across the board... good. And thirdly, the credit growth is improving."
As reported by CNBC TV18, Devalkar maintains a cautious stance on the information technology sector despite recent corrections in technology stocks. He noted that slowing revenue growth remains the biggest concern, with artificial intelligence adding another layer of uncertainty. The fund manager emphasized that if growth rates are going to be sub-5% or around 5%, it's only about whether the stock is in price or not, suggesting a broader trade approach rather than long-term investment at this point. Asked about the sector, Devalkar stated that "if the growth rates are going to be sub-5% or around 5%, then it's only about whether it is in price or not," adding that "I would look at it from a broader trade point of view, rather than the investment at this point in time."
According to CNBC TV18, Axis Mutual Fund has been underweight on the insurance sector but recent regulatory developments have prompted a fresh review of opportunities. Devalkar stated that it was just a few days and it's too early to conclude, noting that the fund would evaluate for more time and let the results pass before actively looking at the sector. He indicated that the fund would "evaluate for some more time, let the results pass, and then we will actively look at it."
As reported by CNBC TV18, Axis Mutual Fund continues to favour manufacturing-linked themes such as power equipment, capital goods, electronic manufacturing services (EMS), auto ancillaries and contract development and manufacturing (CDMO) companies. While acknowledging that valuations across these segments are elevated, Devalkar said the portfolio is diversified across multiple manufacturing themes to reduce concentration risk. The fund also balances these holdings with financial services and platform businesses where earnings growth can outpace revenue growth through operating leverage.
When asked about the leadership transition at HDFC Bank, Devalkar declined to comment on the lender specifically but outlined the framework Axis Mutual Fund follows when evaluating companies undergoing management changes. As reported by CNBC TV18, he said investors should assess whether management risks are already reflected in stock prices, examine the depth of the management team and compare valuations with industry peers before taking an investment view. This approach demonstrates the fund's systematic methodology for evaluating corporate governance changes across its investment portfolio.
According to CNBC TV18, Devalkar noted that risks have increased due to higher crude oil and commodity prices, as well as elevated global bond yields. He highlighted that rising raw material costs could pressure corporate margins and inflation, while higher developed-market bond yields could weigh on capital flows into emerging markets. Although equity valuations have remained resilient so far, he emphasized that investors should remain mindful of these risks and manage portfolios accordingly. The macroeconomic environment continues to present challenges for long-term investment strategies, with Devalkar advising investors to "remain mindful of these risks and manage portfolios accordingly."
