ETMarkets Smart Talk| Where is the value? Sachin Bajaj favours financials, healthcare, capex plays
Axis Max Life CIO Sachin Bajaj sees Indian equities entering a favourable phase as earnings recover, valuations moderate and domestic flows remain strong. He favours financials, healthcare, capital goods, digital platforms and manufacturing beneficiaries, while cautioning against expensive stocks.
Indian equities have shown signs of stabilisation following a sharp correction in the first half of 2026, according to Sachin Bajaj, Executive Vice President and Chief Investment Officer at Axis Max Life. Bajaj attributes the improvement to stabilising earnings, domestic investor flows, and more reasonable valuations. He identifies financials, healthcare, particularly Contract Development and Manufacturing Organizations (CDMOs) and hospitals, capital goods, and capital expenditure (capex) beneficiaries as attractive sectors.
However, he advises investors to avoid stocks where valuation multiples have become disconnected from underlying earnings growth. Bajaj also discusses the outlook for private sector capex, the return of foreign investor flows, India's valuation premium over emerging markets, and the revival in IPO activity as a positive sign for the broader market.
Written by urgent.news from The Economic Times - Top News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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