Nilesh Shah, Managing Director of Kotak Mahindra AMC, which manages nearly $5 billion in assets, believes investors should shift their approach to reacting sensibly to events rather than trying to predict them. According to reports from CNBC-TV18, Shah stated there are currently too many moving parts, including rising oil prices, geopolitical tensions, currency and rate volatility, weighing on corporate earnings and could continue to do so until energy markets stabilise.
Shah is leaning on a bottom-up approach, focusing on companies that can withstand the current disruption and sees selective opportunities across sectors. As reported by CNBC-TV18, he identifies banking and financials as offering pockets of opportunity, supported by steady credit demand. The cement and materials sector is another area where valuations now look reasonable despite cost pressures. Additionally, healthcare and hospitals is emerging as a relatively good defensive play for investors.
Regarding the growing uncertainty in the IT sector with the rise of artificial intelligence, Shah cautioned against a blanket negative outlook. According to CNBC-TV18, he stated that companies that adapt to AI by offering faster, cheaper, and more efficient solutions could gain market share, while others may struggle. This selective approach to AI adoption is expected to create differentiated performance across IT companies.
On monetary policy, Shah noted that the RBI still has room to support growth, even if rate cuts are limited. As reported by CNBC-TV18, he highlighted that liquidity management, better credit transmission, and potential policy tools like credit guarantees could be key levers for supporting economic growth. This suggests a measured approach to monetary policy adjustments in the current environment.
