Key Sectors To Watch In 2025 | Is Indian IT Ready For A Rebound?

In an exclusive discussion, Maneesh Dangi, CEO and Founder of Mosaic Asset Management, shared his sectoral and asset class preferences for 2025, highlighting areas of relative strength amid a challenging macroeconomic environment. ngi identified three key sectors within Indian equities—BFSI, capital expenditure (capex), and consumption—providing nuanced insights into each. He noted that the regulatory tightening in BFSI is easing, which could favor the financing segment, particularly wholesale over retail finance. However, he expressed caution about wealth management businesses due to their high valuations and potentially weak growth environment. In the capex sector, Dangi recommended avoiding Indian local capex due to high valuations and lack of significant growth prospects. Instead, he favored global capex proxies, particularly Indian IT, which could benefit from a weakening rupee and a recovery following its downturn. For the consumption sector, Dangi advised against discretionary consumption, citing prolonged weakness, while suggesting that staples or non-discretionary consumption might see marginal improvements despite current high valuations. He also emphasized the valuation contrast between mega-cap and mid-sized companies in India, highlighting the relative affordability of mega-caps, which he considers a safer investment choice in the current environment.