Sankaran Naren, CIO of ICICI Prudential Asset Management, is prioritizing investments in banks, power utilities, oil refiners, and pharmaceuticals [1].
This strategic shift comes as global economic uncertainties and oil-related risks create volatility in international markets. By focusing on these specific sectors, one of India's leading fund managers is signaling confidence in the domestic economy's ability to withstand external shocks through strong industrial foundations.
Naren said he remains bullish on these sectors, citing attractive valuations and improving earnings [2]. The focus on power utilities and oil refiners suggests a hedge against the very energy risks that may disrupt other parts of the global market. Banks and pharmaceutical companies provide a balanced mix of financial stability and growth potential within the Indian landscape.
Naren said the decision to favor these industries is rooted in the current pricing of assets and the upward trajectory of corporate earnings [2]. This approach allows the fund to capitalize on sectors that are fundamentally strong even when global sentiment is cautious.
The strategy highlights a preference for tangible assets and essential services, sectors that typically maintain demand regardless of broader economic swings. By diversifying across power, finance, and healthcare, the fund aims to maintain growth while mitigating the risks associated with volatile oil prices [1].
“Sankaran Naren remains bullish on banks, power utilities, oil refiners, and pharmaceuticals”
This investment strategy reflects a 'defensive growth' posture. By pivoting toward essential infrastructure like power and healthcare while maintaining a presence in the banking sector, the fund is positioning itself to benefit from India's internal growth drivers while insulating the portfolio from the unpredictable nature of global energy markets.
