Enam Asset Management CIO Jiten Doshi is bullish on these sectors

Sectors that are betting big on the India story on factors like consumption, government’s thrust on infrastructure development, and increased access to finance on the back of digitisation and technology are among the favourites of most market experts even as the benchmarks are seeing huge swings on a daily basis. 

Jiten Doshi, Co-Founder & Chief Investment Officer, Enam Asset Management Company, is the most bullish on sectors like aspiration consumption, finance, infra, industrials, capital goods and exports. 

He believes factors like “increasing income levels, affordable aspiration, young consumers, shrinking product life cycles—home improvement, consumer durables” will drive aspirational consumption while finance is being supported by “easy access, frictionless execution, tech-enabled underwriting, backed by personalised data (DPI)”. 

Further, capex recovery from corporates and government will drive sectors like infrastructure, industrials and capital goods while export-oriented sectors will gain from performance linked incentives (PLI) support and China+1/ Europe+1 opportunities, he says. 

On the other hand, he is bearish on sectors like commodities, and businesses with either low innovation and slow incremental rate of progress or whose profitability needs to navigate frequent policy interventions. 

Doshi is, however, positive on the long-term growth potential of Indian equities.  

“We feel in the coming period, the risk/reward set-up for India is very favourable on account of multiple long-term themes, sustained growth vectors and reasonable valuations,” he says while adding that global uncertainties will amplify the short-term effects of volatility. 

“One needs to be focused and committed to process of finding long-term sustainable value in businesses that can thrive and navigate this long-term India opportunity. The process must also respect the need to be agile and equipped to add to the conviction stories in the investment universe at every prospect of price-value divergence,” says Doshi. 

In terms of the key headwinds facing the Indian stock market, he believes that unexpected electoral outcome in India and its medium-term effects on policy, a muddled economic performance from India affecting earnings and growth trajectory of India Inc and adverse developments from the global markets are the three key concerns.