Revenue, not margin expansion, will drive next leg of growth: DSP CIO Anish Tawakley

DSP Asset Managers CIO Anish Tawakley believes the Indian market is past the dual benefit phase of simultaneous revenue and margin expansion, with margins having peaked in most sectors. He favours financials, cement, and autos as direct beneficiaries of domestic spending and credit growth, while remaining selectively constructive on capital goods given elevated valuations. He is structurally cautious on export-oriented manufacturing due to India's comparative advantage in services, and expects only moderate market returns despite healthy earnings growth, given expensive starting valuations.