Best Stocks For 20% Growth: Why Capital Goods & Healthcare Are Outperforming Now!

While private sector banks and auto stocks have largely delivered market-like returns, some sectors have significantly outperformed. According to Naveen Kulkarni, CIO, Axis Securities PMS, capital goods, EMS (Electronics Manufacturing Services), healthcare, and CDMO companies have been the biggest contributors to portfolio performance. He also highlighted that having zero exposure to IT proved beneficial amid sector-specific challenges. Kulkarni believes investors are rewarding businesses capable of delivering 20%+ earnings growth, leading to re-rating in select small-cap, mid-cap financials and high-growth industrial themes. These sectors continue to remain key drivers of portfolio outperformance.