Next 6 months, expect power financiers, insurance & MF companies to beat banks: Ajay Bagga
Ajay Bagga, Market Expert, says the rural economy coming back is the bigger story. For banks, the issue is twofold. One is there is going to be a NIM compression given that there is a deposit war out there and that sustainable funding is still being sought. A big chunk of the financial savings are going into the markets through various instruments like mutual funds, insurance, provident funds, NPS, or direct investments. Bank deposits are hurting. They have to increase rates and that is causing a NIM compression. Long-term, banks will do well as they are the suppliers to a growing economy. But in the next six months, one can find much better returns in power financiers or insurance or mutual fund companies.
How are you looking at the entire IT space, given that we have seen an outperformance continuing into this month? What do you expect the remainder of the year is likely to bring for the IT space?
Ajay Bagga: IT is looking good. There is continued buying in IT and we expect better results coming in. The AI part, was the cause for worry and we had seen the employee headcount going down as well. Now we are seeing several end uses of AI coming in. The semiconductor companies, as the suppliers of the AI chain, were doing very well and the end user companies were looking at end-use cases, and in the centre were our IT companies.
In this quarter's management commentaries, 200, 300 caselets, 200 end-use are being talked about. That is coming through quite well. So, IT remains our top sector.
How do you stand in the
