Deepan Kapadia, Executive Director and CIO – Portfolio Management Services at Spark Capital PWM, remains structurally constructive on the Indian healthcare sector, supported by rising healthcare spending, the prevalence of chronic diseases, increasing insurance penetration and the growth of organised healthcare delivery.
According to Kapadia, hospitals, pharmaceuticals, diagnostics and medical devices offer attractive investment opportunities. He is particularly positive about the contract development and manufacturing organisation (CDMO) segment.
Meanwhile, any material deterioration in US political or economic stability could trigger global risk aversion, heightened market volatility and capital outflows. For India, the key risks include foreign institutional investor (FII) selling, rupee depreciation, imported inflation and weaker export demand, he said in an interview with Moneycontrol.
It is premature to call the end of the AI boom, but markets are entering a more selective phase. The focus is shifting from AI adoption to monetisation, with investors demanding tangible returns on capital expenditure.
We expect greater differentiation between companies delivering sustainable earnings growth and those trading on future expectations. We remain structurally positive on AI but favour cash-generative businesses with strong competitive advantages and reasonable valuations.