Financials set to outperform IT giants in coming years: Manish Chokhani
«The capital market leaders will continue to do well, but this 25-30% type compounding in AUMs it is a cycle, so when the markets will correct people will go back to banks and maybe two-three years later they will come back to capital market stocks and so on,» says Manish Chokhani, Director, Enam Holdings.
So, one is banks and financials, but the bigger question that everyone is now also pondering about is what to avoid, when the market does come out of this abyss are you going to see newer sectors emerge as leaders and what will continue to remain under performers?
Manish Chokhani: Actually if you look out two years from now, I do not think people have realised, for example ICICI Bank will cross the earnings number of Infosys.
The SBI and HDFC Bank will be approaching the profit numbers of Reliance. So, the absolute number of money which is going to be made by financials, which people will then wake up to and see the rate of changes in favour of financials as opposed to erstwhile leaders of IT which currently will have a good time because of all this mess going on in AI, people will need them.
But when you are looking at terminal values, these are businesses which are going to be beneficiaries of AI by applying them into their businesses, they will start saving their costs and the fact is that the market is going to consolidate into the better and better and better well-run financials, so I do not think people have as yet realised the mega theme which is playing out in financials because we got sidetracked by the
