Manulife’s Rana Gupta Sees Opportunities in Real Estate and Renewables
In a slow-moving market with weak earnings growth, Rana Gupta, Senior Portfolio Manager at Manulife Investment Management, is optimistic about real estate and renewable energy sectors. He also sees tactical opportunities in the IT sector despite recent underperformance.
Real EstateRenewable EnergyIt SectorAiMarket TrendsReal Estate NewsJul 29, 2025
According to Gupta, the infrastructure space, especially top-end real estate and renewable power plants, is expected to see strong and steady demand. He believes these segments will remain solid even when other parts of the market are under pressure.
“The anxieties around global trade and China’s oversupply are slowly fading,” Gupta said, adding that this shift is making some global cyclical sectors like metals and IT look slightly more attractive for short-term opportunities.
In the IT sector, he sees AI as a long-term challenge, changing the way companies manage talent and productivity. He cited the recent decision by TCS to reduce 2% of its global workforce—not directly due to AI, but because of a skills mismatch—as a sign of deeper changes coming. “AI is improving employee productivity and causing disruptions in traditional roles,” Gupta noted.
Despite underperformance in IT—where the index is down 15–16% this year compared to a 5% rise in the overall market—he sees tactical opportunities as valuations have come down and deal activity may slowly pick up with signs of tax cuts and new trade deals in the US. He added that a few Indian IT firms are already working closely with clients on AI implementation, and these could stand out in the coming years.
However, he remains cautious on largecap IT stocks due to their size and the time they may need to adapt to these structural shifts. “This is not the end of job cuts. More adjustments will come. But after a long period of underperformance, selective IT stocks may offer tactical rebound opportunities,” he said.
Gupta noted that after a long gap, there are now visible macro-level policy moves coming out of China. The latest effort, often referred to as an “anti-involution” drive, is aimed at reducing excess supply in key sectors. China currently has significant overcapacity in areas like solar panels, steel, metals, and electric vehicles, much of which is driven by its state-owned enterprises.
Gupta expects that some degree of consolidation could take place in these sectors, which may help improve profitability and gradually restore balance between global supply and demand. He believes that these developments could make Chinese equities look more attractive. This has already led to some capital inflows into Chinese markets, with those equities performing relatively well in recent times.
Frequently Asked Questions
What sectors does Rana Gupta see as promising in the current market?
Rana Gupta is optimistic about the real estate and renewable power sectors, expecting strong and steady demand in these areas.
How does AI impact the IT sector according to Rana Gupta?
AI is seen as a long-term challenge that is changing the way companies manage talent and productivity, leading to disruptions in traditional roles.
What tactical opportunities does Rana Gupta see in the IT sector?
Despite underperformance, Gupta sees tactical opportunities in IT due to lower valuations and potential increases in deal activity driven by US tax cuts and trade deals.
What is China's 'anti-involution' drive and how might it affect the market?
China's 'anti-involution' drive aims to reduce excess supply in key sectors like solar panels, steel, and metals. This could lead to consolidation and improved profitability, making Chinese equities more attractive.
What is Rana Gupta's role at Manulife Investment Management?
Rana Gupta is the Senior Portfolio Manager and India Equity Specialist at Manulife Investment Management.
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