Bajaj Finserv AMC CIO Bets Big on Consumption: From Groceries to Real Estate
Bajaj Finserv AMC CIO Nimesh Chandan is optimistic about the consumption sector, driven by tax benefits, fiscal and monetary policies, and GST cuts. He expects a broad-based recovery in rural and urban areas, with FMCG, quick commerce, and real estate leading the charge.
ConsumptionReal EstateFmcgBfsiQuick CommerceReal EstateAug 21, 2025
He added that there are many positive triggers for a cyclical uptake in consumer businesses. “There are many triggers, positive triggers, for cyclical uptake, also in the consumer businesses. So, I still maintain that everything from groceries to real estate is expected to do well this year. We just have to see which one will do well this quarter and which one will start doing well next quarter,” he noted.
On market segments, Chandan observed that consumption is becoming broad-based. “I think we are out of that K-shape recovery. Rural is doing well and because of tax benefits, you will see lower income, middle income also starting to do well,” he said. He expects FMCG and quick commerce to lead initially, followed by discretionary spending and real estate during the festive season.
Chandan also highlighted the BFSI sector as a key opportunity. “BFSI will join the party very soon. Valuations are attractive in this space… From here on, we see improvement there. So regulatory hassles are over now for insurance, from here we see a good move in the insurance sector overall,” he said, pointing to improving credit growth, easing NIM pressures, and stable asset quality.
On quick commerce, Chandan said platform businesses are well placed. “We love them because they own the customer. They have the data about the customer buying patterns, and they can milk them very well.” Looking ahead, he expects festive demand to lift FMCG, real estate-linked sectors, consumer discretionary, NBFCs, retail-focused banks, as well as travel and hospitality.
Bajaj Finserv AMC, a prominent asset management company, is known for its strategic investment approaches and market insights. The company has a strong presence in various financial services, including mutual funds, wealth management, and insurance. Nimesh Chandan’s optimistic outlook on the consumption sector aligns with the company’s broader vision of capitalizing on emerging market trends and opportunities.
Frequently Asked Questions
What are the key triggers for the consumption sector according to Nimesh Chandan?
The key triggers for the consumption sector, according to Nimesh Chandan, include tax benefits, fiscal and monetary policies, Pay Commission revisions, and GST cuts.
How is the consumption sector expected to perform in rural and urban areas?
Nimesh Chandan expects a broad-based recovery in both rural and urban areas, with rural areas doing well and lower and middle-income groups starting to see improvements due to tax benefits.
Which sectors within consumption are expected to lead initially?
FMCG and quick commerce are expected to lead initially, followed by discretionary spending and real estate during the festive season.
What is the outlook for the BFSI sector?
The BFSI sector is expected to see improvement with attractive valuations, improving credit growth, easing NIM pressures, and stable asset quality.
Why is quick commerce considered a strong investment opportunity?
Quick commerce is considered a strong investment opportunity because platform businesses own the customer data and can leverage it effectively to understand and meet customer needs.
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