Indian stocks may recover on steady growth, earnings, says Axis AMC

"While markets are grappling with peak macro uncertainty from elevated crude prices, geopolitical tensions and global monetary tightening, India's sustained growth above 7% could brighten the outlook," said Sachin Relekar, senior ‌equity fund manager at Axis AMC, which manages assets worth ₹3.66 trillion ($38.5 billion). Relekar cautioned against reading too much into foreign fund outflows, saying they reflected factors such as crude prices, currency movements and global bond yields rather than concerns about India's growth prospects.

Sustained domestic inflows highlight the long-term financialisation of household savings, with substantial funds still held ​in fixed deposits, he said. His investment approach remains focused on stock selection, with AI-led capital ‌expenditure, energy, electrification, domestic manufacturing and consumer internet among his preferred themes. He also favours private-sector banks and non-bank financial companies due ​to ‌attractive valuations and steady earnings outlook, while expecting manufacturing to remain supported by ‌government policy.

"In some cases, earnings have moved forward but prices have not moved as much due to global factors. That said, the risk-reward ‌is ​much better than ​it was a year ago, which will help a rebound," he said. Relekar cautioned against businesses vulnerable to technological disruption and companies ‌facing intense competition ​from e-commerce platforms. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.) Don't miss the most important news and views of the day. Get them on our Telegram channel First Published: Nov 02 2026 | 7:36 AM IST