India’s 8% GDP Growth: Why Markets Are Still Nervous | Sectors To Watch | Expert View

India’s GDP growth has surprised on the upside once again, coming in at over 8% — the highest in six quarters. Yet, markets have reacted with profit booking and caution. Why this disconnect? Abhishek Basumallick, Co-founder and Fund Manager at Shree Rama Managers, explains the role of the inflation deflator and why headline numbers may not fully reflect on-ground sector performance until the base year revision takes place. He argues that instead of relying purely on GDP figures, investors should evaluate company earnings and management commentary. Based on recent quarterly results, sectors such as metals, real estate, chemicals, healthcare, manufacturing, defence and selective banks have delivered strong median EPS growth. Among them, defence stands out as the most promising theme in the near to medium term, supported by rising strategic spending and domestic capabilities.