Sailesh Raj Bhan on new multi-year investment themes and where to invest in smallcaps

economictimes.indiatimes.com:

Sailesh Raj Bhan, CIO, Nippon India Mutual Fund, says: “Logistics is one space which post-GST has become a scalable, large, all India opportunity which is possible. This is directly available to us. Second area is while pharmaceuticals might seem to have done well over the last 20 years, the same opportunities as young as it was maybe a decade back because the country itself is changing, the demographics are changing, the scale itself is changing there. Within manufacturing or energy transition, the power side, the activity levels in India could be way higher and way different in the next 7-10 years. That will throw in a lot of activity on transmission and power networks.
Bhan also says: “These spaces appear to be extremely attractive and the most commonly talked about luxury space in India because of what is really happening in the upper end, the top 10% of India behaving exactly like how the high-income countries globally behave.”
Everyone is smiling this year, do you think the smiles will last for 2024 as well?
I think the micro conditions have significantly improved and policy continuity is also being anticipated by the market.

In addition to you know the shift in oil prices and things like that making things look good for India. The challenge is more in terms of the short-term expectations generally running way higher than what the reality is because earnings need to still catch up, the core earnings need to start becoming more secular from here and that is what will determine returns.

Specific spaces do look attractive, the largecap space is very sensibly priced but some of the pockets are clearly pricing in everything going right for us, so I think 2024 looks good. But I think specifically for largecaps, things