Sankaran Naren, chief investment officer at ICICI Prudential Asset Management, is staying positive on several parts of the Indian market even as global conditions remain unsettled. His preferred areas include banks, power utilities, oil refiners and pharmaceutical companies, which he sees as relatively well placed in the current environment.
The constructive view appears to rest on a mix of attractive valuations and a better earnings trajectory. Banks and power-related companies are being highlighted as sectors that could continue to benefit from domestic demand trends, while refiners and drugmakers are also seen as having supportive business conditions.
At the same time, Naren is not ignoring the key external risk hanging over markets: crude oil. A sharp jump in oil prices could change the investment picture by increasing pressure on costs and sentiment, especially when investors are already dealing with a volatile global backdrop.
Overall, the stance suggests a preference for sectors with visible demand tailwinds and improving fundamentals, while remaining alert to how energy prices could affect the broader market outlook. In that framework, banks, utilities, refiners and pharmaceuticals stand out as the main areas of focus.
