
Rural recovery to power financials, NBFCs poised for revival: Punita Kumar Sinha
Remove Ads
Tired of too many ads?
Remove Ads
"I would focus still a little bit more on quality and defensives and FMCG with the better monsoon could see some pickup as well. Defence, of course, we need. Every country is spending more on defence and with what has happened geopolitically and the India-Pakistan situation, India clearly is going to invest more in the defence sector," says Punita Kumar Sinha Yes, and I think financial as well. Especially with the rural economy picking up, there certain sectors of the financial sector that were focused more on the rural unsecured segment which have had seen a lot of negative news and pressure historically over the last year, that sector could start looking better. So, I would say some of the NBFCs could start looking better and that is where I would still say there is more room because the financial sector has started to perform, but over the last couple of years it has been underperformer.I would focus still a little bit more on quality and defensives and FMCG with the better monsoon could see some pickup as well. Defence, of course, we need. Every country is spending more on defence and with what has happened geopolitically and the India-Pakistan situation, India clearly is going to invest more in the defence sector. And then capex by the government, I am not sure how much, I mean the GST collections have been good, etc, but I do not know how much more capex is going to come from the government, but private sector capex might pick up.I mean, I think it is still in a pause situation from the capex from the companies in the US that discretionary spend on it is still on pause because their own economic situation with tariffs and immigration and visas all of that is still unclear and therefore, it is not like they have opened the tap on the spend side which would be required for IT companies to start seeing bigger order books, that has not happened yet and that still remains a little bit uncertain.But the valuations obviously are reflecting our pricing in this uncertainty. So, the IT sector is not expensive, but there is not a real catalyst at the moment. But I am sure at some point things will stabilise on the trade front, on the immigration front, on President Trump's economic and tax bills, etc, and maybe that is the time there will be a catalyst for more spending to come forth for benefit of this sector.No, not exactly because I still think that the domestic sector and the make in India sector has much more potential than make in India for export because while India is a beneficiary compared to the loss from China and some of the other emerging markets, Asian countries, I still think that we do not know how the trade talks with China and other countries would go and what impact that might have on the export sector and I do not think the India-US trade dialogue is fully baked in, there could be still more negotiation, so I would still focus on what we can control which is what is dependent on the domestic sector.

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Hans India
17 minutes ago
- Hans India
India and Maldives sign several MoUs during PM Modi's visit, agree on FTA Terms of Reference
Male: Prime Minister Narendra Modi on Friday held wide ranging talks with Maldives President Mohamed Muizzu at the President's Office in Male as both leaders reviewed the entire spectrum of India-Maldives relations and reaffirmed their commitment to further strengthening bilateral ties. "They discussed cooperation in the fields of development partnership, capacity building, health, infrastructure, digital economy, aquaculture, climate change and renewable energy. The two leaders called for closer collaboration to enhance peace, progress and prosperity of the Indian Ocean region," the Ministry of External Affairs (MEA) posted on X after the bilateral discussions. The leaders also took stock of the progress in the implementation of the India-Maldives Joint Vision for a 'Comprehensive Economic and Maritime Security Partnership' adopted in 2024. This is Prime Minister Modi's third visit to Maldives - he had visited the Indian Ocean archipelago in 2018 and 2019, earlier - and the first by a Head of State or Government to Maldives during the Presidency of Mohamed Muizzu which began in November 2023. Both countries announced later that they have agreed on Terms of Reference of the India-Maldives Free Trade Agreement (FTA) and also signed several Memorandums of Understanding (MoU), including in the fields of fisheries and aquaculture. The two nations also signed an agreement for a Line of Credit (LoC) of INR 4,850 crores to Maldives besides an amendatory agreement on reducing annual debt repayment obligations of Maldives on Government of India-funded LoCs. An MoU was also signed between the Indian Institute of Tropical Meteorology (IITM), Ministry of Earth Sciences and the Maldives Meteorological Services (MMS), Ministry of Tourism and Environment. The two nations also signed a MoU on cooperation in the field of sharing successful digital solutions implemented at population scale for Digital Transformation between the Ministry of Electronics and IT of India and Ministry of Homeland Security and Technology of Maldives. Both nations also signed an MoU on recognition of Indian Pharmacopoeia (IP) by Maldives. Network-to-Network Agreement between India's NPCI International Payment Limited (NIPL) and Maldives Monetary Authority (MMA) on UPI in Maldives was also signed during PM Modi's visit to Maldives. Earlier in the day, PM Modi was accorded a ceremonial welcome and guard of honour at the Republic Square in Male as he began his official engagements during a two-day State Visit to the country. Maldives President Mohamed Muizzu was also present on the occasion. Children performed a dance to welcome PM Modi at the venue and the ceremonial welcome was followed by a meeting between the two leaders. In a special gesture, President Muizzu welcomed PM Modi at the airport in Male as he arrived from the United Kingdom. Maldives Foreign Minister, Defence Minister, Finance Minister and Minister of Homeland Security were also present at the airport to welcome PM Modi. PM Modi said that he is "deeply touched" by Muizzu's gesture of coming to the airport to receive him. He expressed confidence that the ties between two nations will scale new heights of progress in the coming times. "Landed in Male. Deeply touched by the gesture of President Muizzu to come to the airport to welcome me. I am confident that India-Maldives friendship will scale new heights of progress in the times to come," PM Modi posted on X. PM Modi will participate in the country's 60th Independence Day celebrations as the Guest of Honour on Saturday. This is his third visit to the Maldives and notably the first by any head of state or government since Muizzu assumed office. India and Maldives sign several MoUs during PM Modi's visit, agree on FTA Terms of Reference


Hans India
17 minutes ago
- Hans India
Trump Urges US Tech Firms to Stop Hiring Indians and Focus on American Jobs
Former US President Donald Trump spoke at an AI Summit in Washington, urging US tech companies to stop hiring Indians and instead create jobs in America. He said many firms hire tech workers from India and invest overseas despite high profits made in the US. Trump tied this message to his 'Make America Great Again' (MAGA) mission, calling for American-first policies in hiring, production, and AI development. 'We want you to put America first,' he said. At the Summit, Trump signed three executive orders to boost AI in the US: Create a national strategy to support AI development. Promote neutral AI models developed with federal funds. Offer aid and incentives for fully American-made AI tools. He also warned that his administration would not back 'woke' AI models. Trump encouraged tech firms to build local AI data centers, making it easier to expand AI infrastructure within the country. He emphasized that winning the AI race requires a new kind of national loyalty and patriotism, especially in Silicon Valley and beyond.


The Hindu
17 minutes ago
- The Hindu
UK- India CETA to bring more export orders to Coimbatore industries
The engineering, food, textile, and garment industries in Coimbatore and nearby areas will see huge export potential because of the Comprehensive Economic and Trade Agreement (CETA) between India and the UK, according to industry associations. Rajesh Duraiswamy, chairman of CII Coimbatore, said the India-UK comprehensive trade agreement is a transformative opportunity for Indian exporters, especially for the vibrant industrial eco system of Coimbatore. 'This agreement eliminates steep tariffs, ranging from 8% to 16% and up to 70% for processed foods, granting immediate duty-free access to the UK, one of the world's most lucrative markets. For Coimbatore's core sectors such as textiles, engineering goods, pumps and machinery, agro-products and IT services, the benefits are both immediate and far-reaching,' he said. The agro and food processing sector stands to benefit enormously, as products such as coconut and coir, previously facing duties as high as 70%, will now enter the UK at zero tariffs, opening new avenues for local producers. According to S.K. Sundararaman, chairman of the Southern India Mills' Association, India is lagging in garment exports mainly because of tariff barriers. Indian textile goods attract 4% to 36% duties in different markets, while several competing countries, including, Bangladesh, Vietnam, Sri Lanka, Pakistan have duty free access. The CETA with the UK will bring tremendous opportunities to Tirupur and Karur that are exporting clusters. Orders for cotton knitted garments and kitchen linen are on an upward trend, strengthened by long-term business commitments, following the announcement of the conclusion of India-UK FTA negotiations in May, he said. The Openend Spinning Mills Association has said that products made from openend mill yarn will see a surge in demand in the UK market, thus giving more orders to the mills here. Chairman of the Confederation of Indian Textile Industry (CITI) Rakesh Mehra said Indian exporters will enjoy a more level-playing field vis-à-vis their peers from other countries when it comes to the UK market. This will enable the exporters to improve their market share not only in the top 20 product categories but across the broader textile and apparel segment. India is the fourth largest supplier of textile and apparel products to the UK with almost 6.6% share in the UK's total textile and apparel imports. In 2024, the UK imported textile and apparel products worth about $27 billion, with apparel and made-up constituting 83% of the total, he said. Better market access for Indian exporters will start a new innings across the entire textile value chain, said R.K. Vij, president of the Polyester Textile Apparel Industry Association.