2 weeks ago
Growth Returns, But May Taper in Second Half
Jitendra Sriram says the economy has started growing again after several slow quarters.
He also warns that growth may become slower in the second half of the year.
People bought more vehicles and household appliances during the recent festive season.
Because sales were already strong then, future growth will be harder to compare with.
Sriram’s investment team manages several large mutual funds.
Their midcap fund grew by 19 per cent each year on average over the past three years.
The team benefited from investments in power equipment, mid-sized banks and some chemical companies.
Sriram also likes NBFC shares because borrowing conditions and business profits may improve.
Jitendra Sriram said growth has returned after four to five quarters but could slow in the second half.
White-goods and vehicle demand rose during the previous year’s festive season, creating a high comparison base.
Bank of Baroda PNB Paribas’ Balanced Advantage Fund manages Rs 12,000 crore, its largest fund.
Its midcap fund manages Rs 2,584 crore and delivered 19 per cent compounded annual growth over three years.
Sriram remains positive on NBFC shares, citing softer bond yields, available capital and improving operating leverage.
- Who
- Jitendra Sriram and his investment team at Bank of Baroda PNB Paribas.
- What
- Sriram discussed the return of growth, his funds’ performance and his positive view on NBFC stocks.
- Where
- The articles do not specify a location.
- When
- Growth has returned after four to five quarters; Sriram said it may taper in the second half of the year.
- Why
- He cited strong festive-season demand, softer bond yields, available capital, scale economies and potential improvements in net interest margins and yields.
Key facts
- Growth outlook
- Growth has returned after four to five quarters but may taper in the second half.
- Largest fund
- The Balanced Advantage Fund manages Rs 12,000 crore.
- Midcap fund
- The midcap fund manages Rs 2,584 crore.
- Midcap performance
- The midcap fund recorded 19 per cent compounded annual growth over the past three years.
- Other fund assets
- The multi-cap fund manages Rs 3,400 crore, while the large-cap fund manages Rs 2,600 crore.
- Investment themes
- The team benefited from power equipment, mid-tier banks and selected chemical stocks.
- NBFC outlook
- Sriram said softer bond yields, adequate capital and operating leverage support NBFC shares.
Quotes
Jitendra Sriram
Investment manager at Bank of Baroda PNB Paribas
“So you had yields, for example, the sovereign yields going above 7 per cent, and then they have retraced their way back to the 6.80 per cent kind of a level now. So to an extent, uh, even if you look at the commentary coming from, monetary authority, what we are seeing is that we may probably nudge the guardrails of say 6 per cent that RBI speaks about as their outer boundary, but is unlikely to breach it or go beyond that, as things appear now.”
businesstoday.in
“The thermal power story played out, the fact that, you know, uh, energy is a fungible element. If you see any pressure point, for example because of the Middle East and what is happening in the Straits of Hormuz, what we are seeing is a lot more renewed interest coming into thermal power.”
businesstoday.in
Sources
Related news
Madhu Nair Sees Attractive Indian Equity Entry Point for Investors
HSBC Consumption Fund Completes Three Years, Delivers 15.13% CAGR
Only 6 Active Large-Cap Funds Consistently Beat BSE 100 Benchmark
Nifty 50 May Reach New High by 2026 End
Ajay Bagga Highlights Sector Picks, Oil and Monsoon Risks
Trump Floats Renaming Strait of Hormuz as ‘Trump Strait’
Chevron Plans $7 Billion Venezuela Expansion Amid U.S. Oil Push
Saudi Arabia Says Iranian Tanker Attack Killed Two Sailors
U.S.-Iran Exchange Escalates Across Middle East, Markets Slide
Trump Aides Seek Quiet Iran War Before Midterm Elections
