Old Economy Stocks Are Back? Why Indian Blue Chips May Lead The Next Market Rally

Are traditional sectors losing relevance in the new-age economy? Chockalingam Narayanan, Head of Equities - PMS & AIF, ICICI Prudential AMC, explains why old economy businesses can still create wealth when backed by strong earnings growth, improving ROE, and better capital allocation. He says sectors supporting emerging themes like semiconductors, electronics, defence, and aerospace need strong foundational industries. The portfolio also focuses on new-age consumption trends, especially services and experiences. According to him, investment success depends less on whether a company is old or new economy, and more on growth potential, cash flows, and risk-reward balance.