Sivakumar said banks still play a pivotal role, yet capital markets and AMCs are emerging as the next frontier for growth—an insight that could reshape portfolio allocations across the sector.
Banks’ loan growth is solid and credit quality steady, yet margins remain a critical watchpoint; improving margins could prompt a rerating of bank stocks.
On UPI monetisation, Sivakumar expects banks to capture the lion's share, while payment firms may recover part of infrastructure costs.
Metals remain underweight; the focus is on selective companies rather than a blanket sector bet, a strategy that underscores the importance of company‑level analysis over broad sector moves.
Despite global macro headwinds, the outlook for corporate earnings over the next four quarters remains intact, with oil price volatility seen as a short‑term concern rather than a long‑term threat.
Axis AMC’s stance on gradual exposure increase reflects a more optimistic view of the overall cycle, signalling potential upside as the market rebalances.