Axis Capital Identifies Defense, Electronics, and Financials as Top Investment Themes for Next 12-18 Months

Neelkanth Mishra, Chief Economist at Axis Bank and Head of Global Research at Axis Capital, shares insights on key investment themes during a recent discussion with CNBC TV18, highlighting defense, electronics, and financial sectors as prime areas for investment.

Post-Pandemic Recovery and Growth Drivers:

Mishra notes the gradual alignment of investments with pre-pandemic levels, signaling a potential shift in growth drivers. Panels at the Axis Capital India conference explore emerging sectors like new energy and electric vehicles, reflecting growing curiosity about future growth opportunities.

Optimistic Outlook for the Indian Economy:

Mishra expresses optimism about the Indian economy’s outperformance compared to the global scenario. He emphasizes the potential of domestic cyclicals to perform well in the coming months, despite near-term uncertainties such as monetary tightening and global growth concerns.

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Axis Capital Sees Opportunities in the Banking Sector:

Mishra identifies the banking sector as oversold, citing concerns about liquidity tightness and its impact on credit growth. However, he expresses confidence in the sector’s resilience and hints at potential pricing discipline among banks as credit demand remains strong.

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Impact of Government Spending on Various Sectors:

Mishra acknowledges a moderation in government spending, particularly in areas like railways and urban infrastructure. However, he downplays the significance of government spending as the sole driver of industrial growth, emphasizing the increasing role of private sector investment.

Shift Towards Private Sector-Led Growth:

Looking ahead, Mishra predicts a rise in private sector capital expenditure, particularly in sectors like utilities, materials, and energy. He anticipates a shift towards private sector-driven growth in industrial investments, signaling a positive trajectory for economic expansion.


Axis Capital’s insights highlight promising investment avenues amidst evolving market dynamics. Investors can capitalize on opportunities in defense, electronics, and financial sectors, aligning their strategies with emerging themes to navigate potential challenges in the economic landscape.

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