Betting on capex story as it has strong legs and can go on for many years: Chirag Setalvad

economictimes.indiatimes.com:

Chirag Setalvad, Head- Equities, HDFC AMC, says the government is spending a tremendous amount of money on infra and hence businesses related to infra and investments are doing extremely well. So, that is the first part. The second is private capex has been a laggard and it has been a laggard now for 3, 4, 5, 6 years, right. It has been the great hope and it has not panned out. But eventually it will, it is not like we are never going to spend capex on the private sector side. So, that will be the second leg which will eventually drop. The capex story can continue for many years. It will bring in construction companies. It will bring in equipment providers. That is the story which has strong legs and many years to go. Clear tailwinds are visible there.

A purist who tracks technology tells me AI is just a passing phase. It happened with Y2K, they evolved. It happened with the enterprise, they evolved. It happened with digital, they evolved and they survived Covid. AI is something which will be part of every Indian IT services DNA and they will fly in coming quarters. What is your understanding?
Chirag Setalvad: I do not think any of us know what AI is.

We know what chat GP does and it is entertaining. But how is it going to change the landscape, how it is going to change businesses? It is very, very early. And who are going to be the winners at this point of time? In the Indian context, at least, it is impossible to figure it out.

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