Market veteran Ajay Bagga on top sectoral picks; impact of oil prices, monsoon on economy
Bagga said Sashidhar Jagdishan's retirement as the CEO and MD of HDFC Bank raises uncertainty for the private sector lender.
- Aug 31, 2026,
- Updated Aug 31, 2026 4:58 PM IST
Senior market veteran Ajay Bagga on Monday said the fresh US attack on the two rocket launchers on Larak Island in Iran and its reaction by Iran could pose inflationary risks for the Indian economy. The attack, which would push up crude oil prices could continue to impact input costs in the Indian economy, Bagga told BTTV in an exclusive interview. Brent crude prices rose 2% to above $90 per barrel level today following the attack on Iran.
HDFC Bank stock could recover
Bagga said Sashidhar Jagdishan's retirement as the CEO and MD of HDFC Bank raises uncertainty for the private sector lender. Markets would not like the development. Bagga said there is a lot of domestic talent in the banking sector, adding that if the market likes the new name, the stock is expected to bounce back.
India needs to grow faster
On the GDP data, Bagga said India needs to grow faster if the country is aiming at a Viksit Bharat in 2047.
Elaborating on the country's growth prospects, Bagga said a big constraint on the economy is the US-Iran conflict. "That has had an impact on the first quarter, even for exporters to the Middle East, for remittance flows, as well as the oil import, the gas import, fertilizer import bills having gone up," said Bagga.
But Bagga mentioned that the GST cuts provided strong tailwind boosting government's infra expenditure.
The power sector investments have kept growing along with data center investments, said Bagga.
Bagga also mentioned the impact of Monsoon and El Nino on the country's growth. The likely impact will have to be monitored in this quarter and the next one.
Sectoral picks Commenting on the sectors that are likely to do well in the market, Bagga said banks and NBFCs stocks would continue to do well. Power sector, renewables, energy security sectors are expected to do well in the stock market. government infra, PLIS-
Bagga also mentioned small industrials, defence stocks and government infra sectors among his top picks.
Senior market veteran Ajay Bagga on Monday said the fresh US attack on the two rocket launchers on Larak Island in Iran and its reaction by Iran could pose inflationary risks for the Indian economy. The attack, which would push up crude oil prices could continue to impact input costs in the Indian economy, Bagga told BTTV in an exclusive interview. Brent crude prices rose 2% to above $90 per barrel level today following the attack on Iran.
HDFC Bank stock could recover
Bagga said Sashidhar Jagdishan's retirement as the CEO and MD of HDFC Bank raises uncertainty for the private sector lender. Markets would not like the development. Bagga said there is a lot of domestic talent in the banking sector, adding that if the market likes the new name, the stock is expected to bounce back.
India needs to grow faster
On the GDP data, Bagga said India needs to grow faster if the country is aiming at a Viksit Bharat in 2047.
Elaborating on the country's growth prospects, Bagga said a big constraint on the economy is the US-Iran conflict. "That has had an impact on the first quarter, even for exporters to the Middle East, for remittance flows, as well as the oil import, the gas import, fertilizer import bills having gone up," said Bagga.
But Bagga mentioned that the GST cuts provided strong tailwind boosting government's infra expenditure.
The power sector investments have kept growing along with data center investments, said Bagga.
Bagga also mentioned the impact of Monsoon and El Nino on the country's growth. The likely impact will have to be monitored in this quarter and the next one.
Sectoral picks Commenting on the sectors that are likely to do well in the market, Bagga said banks and NBFCs stocks would continue to do well. Power sector, renewables, energy security sectors are expected to do well in the stock market. government infra, PLIS-
Bagga also mentioned small industrials, defence stocks and government infra sectors among his top picks.