DSP Asset Managers’ Chief Investment Officer Anish Tawakley says banks and insurers remain the best bets in the current cycle, while he stays wary of NBFCs and hospitals. — He adds that large private sector banks are set to gain market share as credit intermediation shifts back to the banking system. — "I expect a cyclical pickup in the banking space with good volume growth, and that's my favourite space at the moment," Tawakley told reporters.
Insurance is the next frontier, according to Tawakley. — The regulator’s consultation paper will trigger a one‑time reset in policy sales, but growth is expected to resume from the new base. — "There'll be a one‑time dip in VNB, but then the VNB starts growing again," the CIO said, emphasising that insurers with stronger brands will benefit as sales become more demand‑driven.
Hospitals are off the radar for Tawakley, who maintains a zero portfolio in the sector. — "I've been saying for a while that I'm running a zero hospitals portfolio," he noted, pointing to valuations that were already over‑done and the looming margin pressure from expanding capacity.
The caution extends to NBFCs, especially those exposed to unsecured retail lending. — "I do expect a credit cycle in the unsecured lending space… and I'm avoiding that," Tawakley said, noting that retail credit penetration remains low and largely limited to mortgages. — He also warns that capital‑market‑linked businesses—brokerages and exchanges—are near a peak and cyclical.
In tech, Tawakley sees valuations normalising after a correction, but AI is not the hurdle. — "At the moment, the problem is clearly GCCs," he said, citing global capability centres eroding Indian IT service business. — For real estate, he favours developers monetising existing land banks rather than aggressive new acquisitions, arguing that cash‑generating projects and shareholder returns position companies better as the property cycle matures.