Harish Krishnan, Co-CIO and head of Equity at Aditya Birla Sun Life Mutual Fund, which manages over $44 billion in funds, sees strong long-term potential in the metals sector despite recent market fluctuations.

Krishnan noted that while metals have already performed well, they remain attractive due to policy shifts, fiscal support, and evolving market dynamics. “Metals was one of our ‘dark horse’ calls at the start of 2025,” he said, citing factors like safeguard duties and increased government spending in Europe that have strengthened the sector’s outlook.

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The Directorate General of Trade Remedies (DGTR) has proposed a 12% provisional safeguard duty on flat steel products, which, while lower than the 25% sought by the industry, is still expected to support pricing stability and long-term growth. It is yet to be notified by the Finance Ministry.

Beyond metals, Krishnan likes private banks and cement, citing low ownership levels and potential earnings growth.

He also sees value in the insurance sector despite regulatory headwinds, as established players consolidate their market positions.

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A broader market shift could be underway, with underperforming sectors like cement, energy, chemicals, and textiles potentially emerging as new leaders.

Krishnan believes that three key policy changes—fiscal stimulus, an accommodative stance from the Reserve Bank of India (RBI), and currency management—are leading to a more favorable investment environment.

For the full interview, watch the accompanying video

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