August 20, 2025

India’s markets are on a slow dance right now, but Rajesh Bhatia, CIO of ITI Mutual Fund, has a more upbeat story to tell! He says India's economy is still strong and no big market crashes are in sight. What’s bringing hope? Interest rate cuts and reforms, like GST, are expected to boost growth by FY26 or FY27. Let’s hear about defence stocks. Rajesh says, “It is a no-brainer that in the next 10 years, given this geopolitical context, the need to increase our independence on defence products is going to increase.” Defence spending will stay high and visible. But here’s the twist: he warns these stocks are priced super high right now. So, he suggests waiting patiently for a price dip before jumping in. The defence journey is long and steady! What about private banks? Rajesh explains the first half of the year was slow because interest rates dropped and banks felt a squeeze on margins. Borrowing was weak as companies chose bonds or equity over bank loans. But now, optimism is rising for the second half. “FY27 will be a growth year of acceleration,” he says. He favors a comeback bank that stands out. So, hold on to your private bank stocks with a hopeful eye on the future. The auto sector is buzzing with talk about GST reforms and easing rare earth magnet issues. Rajesh says the GST benefits are great but advises looking beyond that. He loves auto companies that keep capturing market share—like certain SUV, tractor, and two-wheeler makers. These champs have strong business moats and will win over the long run. Summing up, Rajesh tells us not to get scared by the current slowdown. Sharp market crashes happen only when macroeconomic health takes a bad hit, and that’s not India’s story now. Instead, expect a time-based correction. The 100 basis point interest rate cut and upcoming reform steps will likely spark a recovery soon. His words are clear: “Be optimistic, pick winners in autos and private banks, and watch for defence stock corrections. India’s macro context is strong, and a recovery is on the horizon!” So, keep calm and invest smartly as India’s economic saga unfolds.

Read More at Economictimes →

Tags: Rajesh bhatia, Iti mutual fund, Defence stocks, Private banks, Auto sector, Gst reform,