Archive · 31 Aug 2026
Ajay Bagga Highlights Sector Picks, Oil and Monsoon Risks
Ajay Bagga discussed which parts of India’s stock market might do well.
He favored banks, lending companies, power, renewable energy and energy-security businesses.
He also highlighted small industrial companies, defence and government infrastructure.
He said HDFC Bank may face uncertainty after Sashidhar Jagdishan’s retirement as its CEO and managing director.
Investors may react positively if they like the bank’s new leadership choice.
Bagga said the US-Iran conflict has made oil, gas and fertilizer imports more expensive.
He also said it has affected some exporters and money sent home from abroad.
Government spending on infrastructure and GST cuts could support the economy.
India’s growth and the effects of the monsoon and El Nino will need close attention.
Ajay Bagga said banks, NBFCs, power, renewables and energy-security stocks could perform well.
He also identified small industrials, defence and government-infrastructure sectors as top market picks.
Bagga said Sashidhar Jagdishan’s retirement from HDFC Bank creates uncertainty and could initially unsettle investors.
He said the US-Iran conflict has raised oil, gas and fertilizer import bills and affected exporters and remittance flows.
Bagga said India must grow faster, while monsoon and El Nino effects need monitoring in coming quarters.
- Who
- Market veteran Ajay Bagga, HDFC Bank and its retiring CEO and managing director Sashidhar Jagdishan.
- What
- Bagga assessed India’s economic outlook, market risks and sectors likely to perform well.
- When
- The discussion addressed current and upcoming quarters, including the first quarter and the next quarter.
- Where
- India, with effects also involving the Middle East and the United States-Iran relationship.
- Why
- Bagga said faster growth is needed for India’s Viksit Bharat 2047 goal, while oil prices, conflict, weather and leadership uncertainty could affect markets and the economy.
- Market picks
- Banks, NBFCs, power, renewables, energy security, small industrials, defence and government infrastructure.
- HDFC Bank concern
- Sashidhar Jagdishan’s retirement as CEO and managing director raises uncertainty for the private-sector lender.
- Potential stock response
- Bagga said HDFC Bank’s stock could rebound if the market approves the new leadership choice.
- External constraint
- Bagga identified the US-Iran conflict as a major constraint on the economy.
- Import impact
- Oil, gas and fertilizer import bills have increased, according to Bagga.
- Policy support
- GST cuts and government infrastructure spending were described as positive economic tailwinds.
- Weather risk
- The effects of the monsoon and El Nino will need monitoring in the current and following quarters.