While there is debate on whether market valuations are stretched, Yogesh Patil, CIO of LIC MF, who oversees nearly $4 billion in funds, says one should also consider that the fundamentals of India have improved significantly.

“I am not saying it is a completely overvalued or a very fair valued, undervalued, we need to check the sector outlook and basically it’s a stock specific and sector specific market always,” he told CNBC-TV18.

India’s story is capex-driven. So for the next 5-6 years, he sees good investment in the industrial side in power, railways and defence.

According to him, export opportunities for India are very high.

Patil sees moderation in earnings growth for this year and mid-teens growth next year.

Also Read | What’s worrying this CIO about mutual fund flows?

He says overall power sector investment including generation and transmission could be around ₹50 lakh crore for the next 6-7 years.

Also Read | Exclusive: Ethanol-powered two-wheelers are coming soon

Patil’s power sector investments are diversified across generation, transmission and financers.

Talking about the overall big overweight across his portfolio in terms of sectors, he mentioned that industrials, followed by BFSI and consumers are the broader sectors.

He is positive on financials and prefers large private banks.

Also Read | Mumbai and Delhi lead global surge: Record price hikes in prime residential markets

According to him, demand for pumps has gone up because of the government’s focus on solar pumps.

“Various investments are coming from data centres and other companies. Government focus on solar pumps is resulting in a big growth for the last 2-3 years for this segment and solar pump sector growth could be very high in coming years,” he said.

For more, watch the accompanying video