Murarka also sees the ongoing market correction as beneficial and indicative of a healthy market environment, with more value found in large caps versus small and mid caps. He believes that the revival of the investment cycle and India's manufacturing sector will surprise on the upside. He is also positive on the IT sector, expecting a strong revival of IT investments by global companies in the second half of this year. He predicts that the upcoming wave of IT spends driven by generative AI over the next decade will be bigger than any previous IT investment cycles.
Key takeaways:
- Generative AI is expected to drive a resurgence in the IT industry, according to Pankaj Murarka, chief investment officer at Renaissance Investment Managers.
- The sector is expected to witness the largest investment cycle globally, surpassing any previous investments seen over the past 30-40 years.
- A strong revival of India's investment cycle is expected, with a significant rebound in private capex expected after the election.
- Murarka is positive on the entire engineering and capital goods sector, as well as the healthcare sector, and anticipates a comeback for financials in the second half.