INCOME TAX2 Oct 2026
ICICI Pru AMC’s S Naren on contrarian investing, AI risks and navigating a volatile market | Mint
ICICI Prudential's S Naren says high oil prices near $107-108 and costly US AI stocks are the main risks for Indian markets right now. Small-cap valuations look stretched mainly because of heavy fund flows. He sees banking and beaten-down insurance as relatively cheap sectors worth watching, and says contrarian investing differs from value investing as he launches a contra fund.
Key Statutory Highlights
- S Naren says oil at $107-108, along with high transportation costs, is a significant near-term headwind for Indian markets, and markets could recover if oil prices decline.
- He remains reasonably positive on banking, calling it one of the few relatively inexpensive sectors with a favourable near- to medium-term outlook.
- He warns that anything connected to US AI is priced for continuous growth, so any challenge to those growth assumptions could lead to significant derating.
Actionable Advice for Taxpayers / Founders:If you hold small-cap or sector-focused mutual funds, review your overall asset allocation with your adviser instead of acting on any single market view, and consider speaking to a Securities and Exchange Board of India (SEBI) registered investment adviser before making changes.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
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