Vinit Sambre, Head of Equities at DSP Mutual Fund, which manages assets worth $21.45 billion, believes that India growth potential lies in several key sectors, including rural consumption, building materials, healthcare, and IT. He pointed out that these sectors, despite challenges, are well-positioned for long-term growth.
Sambre emphasized the revival of rural themes, which had been underperforming for some time but are now poised for growth due to welfare spending and steady rural incomes. He sees significant opportunities in both discretionary and non-discretionary consumer goods in rural and semi-urban markets.
The building materials sector, although benefiting from strong real estate sales, has yet to fully capitalize on its growth potential. According to Sambre, this segment holds considerable promise with positive growth visibility.
In the healthcare sector, Sambre expressed confidence in its robust growth, driven by steady domestic market expansion (11-12% annually) and its resilience to disruptions. Furthermore, he highlighted the growth opportunities tied to the performance of international healthcare businesses.
Sambre also discussed the IT sector, acknowledging the challenges posed by AI-related shifts, but stressed its long-term potential for delivering solid returns.
While the lending sector faces challenges, Sambre sees non-banking financial companies (NBFCs) as crucial drivers of growth, particularly in commercial vehicles and personal finance. He predicts that the current stress in the sector will stabilize in one to two quarters, with any market corrections providing attractive opportunities for long-term investors.
Looking ahead to 2025, Sambre remains cautious, expecting some consolidation or corrections in the first half of the year. However, he anticipates recovery driven by factors such as improved rural consumption, higher government spending, and low base effects in the March quarter. Sambre expects a clearer market direction and growth momentum to emerge in the second half of the year, though he remains skeptical about markets reaching new highs until growth is firmly re-established.
