Axis AMC's Ashish Gupta: Strategic Favors in Real Estate, Capital Goods, Healthcare, and Travel
Ashish Gupta, Chief Investment Officer at Axis Asset Management, shares insights on his investment strategy, favoring real estate, capital goods, healthcare, and travel sectors while monitoring earnings growth and GDP trends.
Real EstateCapital GoodsHealthcareTravelGdpReal EstateAug 13, 2025
We do like real estate. We are seeing the commercial cycle continuing to strengthen, Gupta said, adding that capital goods companies, especially in power equipment manufacturing, are showing strong earnings delivery. He also noted market share gains for retail, quick commerce, and consumer tech companies, even though overall consumption trends remain subdued.
Corporate earnings have been steady but not high. Top line growth… is only around 6–7% for the broader market, he said. In some mid-cap and small-cap stocks, growth is still between 10-12%, while certain sectors like cement, real estate, and hospitality are seeing earnings growth above 20%. However, these sectors trade at a 60-70% premium to Nifty valuations.
On the broader economy, Gupta pointed out that nominal GDP growth has slowed since the fiscal year 2021-22 (FY22), when it touched 20%, to an estimated 8% this year. He linked this slowdown to weaker goods and services tax (GST) collections and said it was weighing on corporate earnings.
Commenting on India’s merchandise exports to the US, Gupta said they form only 2% of GDP, so the impact of tariffs would be minimal for most companies, though some sectors like textiles could see a bigger effect. The focus, he stressed, should be on whether domestic growth revives with liquidity infusions and lower interest rates.
On ICICI Bank’s hike in minimum average balance, Gupta said banks face rising service quality expectations and regulatory demands. It is fair for banks to… look at a cohort of customers where they can meet the customer’s expectation, he said.
In the F&O segment, Gupta said Securities and Exchange Board of India (SEBI) has acted against potential malpractices and introduced measures that are already showing results. We are seeing some tempering down in the volumes and activity… SEBI will probably wait to see what the impact is, he noted.
Frequently Asked Questions
Which sectors does Ashish Gupta favor in his investment strategy?
Ashish Gupta favors real estate, capital goods, healthcare, hospitality, and travel sectors.
What is the current top line growth for the broader market according to Ashish Gupta?
The current top line growth for the broader market is around 6–7%.
How has the nominal GDP growth trended since FY22?
Nominal GDP growth has slowed from 20% in FY22 to an estimated 8% this year.
What is the impact of US tariffs on India’s merchandise exports according to Ashish Gupta?
The impact of US tariffs is minimal for most companies, as India’s merchandise exports to the US form only 2% of GDP, though some sectors like textiles could see a bigger effect.
Why did ICICI Bank hike its minimum average balance?
ICICI Bank hiked its minimum average balance to meet rising service quality expectations and regulatory demands.
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