Devalkar said inflation is likely to aid nominal growth across industries, including fast-moving consumer goods (FMCG), banking and building materials, though investors should remain mindful of rising input costs. He also pointed to increasing adoption of electric two-wheelers and the potential benefits of a weaker rupee for export-oriented businesses as themes worth tracking.
Devalkar said growth trends in consumption appear to be stabilising in several categories.
He added that sectors such as banking could also benefit through stronger credit growth, although investors should continue to monitor asset quality risks.
According to Devalkar, food-related FMCG categories are showing signs of improvement. “The slowdown in the growth has bottomed out in multiple categories, especially in the FMCG. The food category has been doing well, and that is accelerating,” he said.
Devalkar maintained a cautious stance on IT stocks despite the sector’s valuation correction. He noted that large-cap IT companies continue to face growth challenges and said there are currently no indications of a meaningful improvement in growth trajectories.
While a weaker rupee could provide support to revenue growth, he said the key question remains whether companies can secure incremental business rather than merely benefit from currency movements.
Devalkar highlighted rising electric vehicle penetration in the two-wheeler market. EVs now account for around 10% of two-wheeler sales, while penetration in scooters has reached about 20%, he noted.
He also pointed to manufacturing exports as a potential long-term beneficiary of currency depreciation. Historically, IT and pharmaceutical exporters gained from a weaker rupee, but Devalkar said investors should now evaluate opportunities across a broader set of export-oriented manufacturing companies.
The beneficiary in exports could extend beyond traditional sectors, he said, suggesting that manufacturing exporters may emerge as important beneficiaries if currency advantages persist and logistical constraints ease over time.
Devalkar added that investors should continue tracking how these structural trends evolve, particularly in areas linked to electric mobility, exports and domestic demand recovery.
For the full interview, watch the accompanying video
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