What are the sectors to position in for the next market upcycle? Abhishek Basumallick answers

“Banking, NBFCs, and MFIs are good places to invest as the Indian banking sector has cleaned up its books, making credit growth pick up significantly. Capital goods and power sector are well-poised for growth in the next 2-3 years with high government investment in railways, highways, and airports. Companies in the capital goods sector, despite some trading at high price-to-earnings ratios, are expected to contract PEs due to anticipated high growth in the next few quarters. Additionally, the pharma sector is expected to show strong earnings growth in the next 2-3 years.”