Prefer to play financials through private banks and NBFCs via SMIDs over next 1 year: Venugopal Garre

economictimes.indiatimes.com:

Venugopal Garre, MD, Bernstein, says “the top private banks would be the priority at this juncture because I do not have too many regulatory risks to contend with, for that particular pack. That will be still at the top of the pack, which is what we are essentially playing at this juncture. I have not been too confident around NBFC models in general, especially the larger ones. Some of the SMIDs (small and midcaps) have done really well, but the way to play that for me was my, through my SMID allocation. That is the way I am approaching the financial sector, especially over the next 12 months.”
There is really something special happening in the US tech space, looking at the valuations of Nvidia or Microsoft or for that matter, even, Apple now, market caps of trillions of dollars are getting created. If one has to look at that as the mega trend where IT is where all the action and excitement is, what is the best way to participate in India? Indian IT largecaps do not offer this play. But when such exciting things are happening in the tech world, how can Indian investors participate in that?
I would say this is a very important question, but very tough to answer because of the nature of opportunities you get in India.

I mean, if you can still invest in those global tech companies as Indians, perhaps you should. That is the simplest way to do it. And these are business models which are very futuristic, which are offering you growth, which are offering you global exposure because they are not like local companies just exposed to the US market.