Why you need not say goodbye to capex and invest only in consumption theme now

economictimes.indiatimes.com:

Prashant Khemka, Founder, White Oak Capital Management, says since the central election, there has been a noticeable shift in how cyclical stocks perform compared to defensive or consumer stocks. This Budget may strengthen that trend. Khemka does not expect any significant underperformance from specific sectors, but the strong performance of cyclical stocks over defensive or consumer stocks may not continue as it has in recent years.
Khemka says White Oak always wants to have a balanced portfolio. There are great opportunities to find in every segment of the market, in every sector of the market, and every other way you slice and dice the market, you can find good investment opportunities. Is it time to go ahead and park your money in the consumption theme and say goodbye to the capex theme?
Prashant Khemka: In the last several years, there was a strong operating momentum and as a result of that, there were multiple expansions in the domestic cyclicals. In consumption, it was the other way around. Consumption stocks were suffering from a somewhat weaker operating environment. As we all know, the last couple of years the consumption names have reported somewhat subdued numbers and they have gone through multiple compression.

One can argue they started with much higher multiples than historical averages and the cyclical started with a lot lower multiples and so there has been some mean reversion and beyond mean reversion, the cyclicals extrapolated the strength for much longer. I think since the central election,