News

Mahindra Manulife's Sanghavi sees value in large caps, eyes these sectors for opportunitiesKrishna Sanghavi, Chief Investment Officer – Equities at Mahindra Manulife Investment Management, which manages over $3 billion in assets, noted that clear themes are now less obvious. Instead, the market is seeing quicker shifts in sectoral focus, making stock selection more important than ever.By Prashant Nair    | Surabhi Upadhyay    | Nigel D'Souza   May 14, 2025, 12:13:55 PM IST (Updated)2 Min ReadKrishna Sanghavi, Chief Investment Officer – Equities at Mahindra Manulife Investment Management, which manages over $3 billion in assets, believes the investment environment has become more nuanced, with sector leadership rotating quickly and clear market narratives hard to pin down.

Despite recent market volatility, Sanghavi believes there is still value in large-cap stocks and that investors need to remain selective and focus on fundamentals.

"Small caps still remain a little bit on the valuation side, slightly higher," he noted, adding that large caps offer more comfort from a valuation standpoint at current levels.

Also Read: A $45 bn fund CIO sees 'dramatic' foreign flows into India

He also pointed out that while broad narratives have faded, India’s core macroeconomic story remains intact. “The bigger narrative is clearly the same — India is a growing economy. That 10–11% nominal GDP growth rate… has been the core narrative for the last 25 years,” Sanghavi said.

He acknowledged that clear themes are now less obvious. Instead, the market is seeing quicker shifts in sectoral focus, making stock selection more important than ever.

Select opportunities still exist in segments like industrials, healthcare, and defence, particularly where margin visibility and policy support are strong.

"The core business momentum of defence is intact... not only can Indian companies do it for India, but they can possibly start thinking of some exports, as and when things play out," he said.

Sanghavi also pointed to ferrous metals as a potential opportunity in the near term, aided by recent policy support. “The anti-dumping duty has played out as something positive,” he said, adding that the recent earnings season showed commodity companies driving overall results. While he acknowledged the current duty is temporary, he noted that it provides near-term visibility for the sector.

Also Read: Manishi Raychaudhuri believes India's valuations are still stretched

Sanghavi also said that institutional investors continue to take a long-term view, but shorter-term price moves are being influenced heavily by leveraged market participants, especially in the broader market.Continue ReadingFirst Published: May 14, 2025 12:12 PM ISTCheck out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!Tagsfund managerfund managersMarket Outlook