According to CNBC TV18, Anand Shah, CIO of PMS and AIF at ICICI Prudential AMC, which managed $3.24 billion in assets as of July 31, 2026, addressed concerns about India's flooded IPO market. Shah stated that "The valuations are remaining in check because of all the supply that we are seeing" and emphasized that the wave of new listings is not a warning sign but rather a byproduct of what he termed 'financialisation of savings 2.0' - a shift of Indian household money from gold and real estate into bank deposits, and now into equities. Shah noted that existing investors may feel some pain as the flow of new shares limits market rise speed, but this creates comfort for new investors since it prevents excessive valuations. "It's a comfort that the market has not become overtly expensive, where you and I can really tell that this is an absurd valuation," he said, adding that this shift means demand for stocks, and for new supply to absorb it, will likely continue.
As reported by CNBC TV18, Shah highlighted a significant shift in market dynamics, stating that for roughly 15 years, equity markets rewarded consumer-facing brands that benefited from cheap imports and low inflation, much of it driven by China. However, he noted that this era is ending as China pulls back from exporting deflation due to tariffs, rising domestic costs and internal shifts in its economy. This has triggered new entrants and rising competition in sectors that were once stable, including paints and cables. Shah emphasized that investors need to watch which sectors are consolidating and which are fragmenting, since consolidation tends to drive wealth creation while fragmentation can destroy it, citing telecom as an example where heavy competition produced no wealth creation for years, but consolidation has made it one of India's best-performing sectors this year.
According to CNBC TV18, Shah pointed to emerging fragmentation in the automotive sector as electric vehicles gain market share from legacy players. He noted that entry-level car demand is slowing while EV penetration rises in both four-wheelers and increasingly two-wheelers. Shah added that tensions in West Asia could add to this shift by raising costs for petrol and diesel vehicles and pushing governments to boost EV incentives further. This transformation represents a significant change from the previous era of stable automotive market dynamics.
As reported by CNBC TV18, Shah addressed the performance of new-age listed companies such as Eternal and Nykaa, stating that the sharp post-listing declines they experienced are behind them. "We have passed that phase," he said, adding that these companies now show clearer business models, slowing competition from new entrants, and growth rates ahead of the broader market. However, regarding IT services, Shah said artificial intelligence is weighing on revenue growth across the sector, and while companies have managed the pressure better than expected, the impact remains relentless. "That pressure remains relentless," he said. ICICI Prudential remains underweight IT overall but is selectively adding to a small number of companies where valuations now look more reasonable than they did a few years ago.
According to CNBC TV18, Shah pushed back on the idea that Indian investors should look abroad for better opportunities given India's $8 billion cap on mutual fund investment overseas. He stated that foreign equities look too overhyped at this point in time and emphasized that India's economy remains young, with a long growth runway and companies that deliver stronger returns on equity than other emerging markets. This strategic positioning reflects ICICI Prudential's confidence in India's domestic market potential despite global investment opportunities.
