Pankaj Tibrewal on AI, capital markets and the place buyers ought to focus in 2026
Midcap IT Outperformance
Discussing the IT sector, Tibrewal highlighted the distinction between largecap and midcap gamers: “Progress momentum in massive IT corporations is okay, not too unhealthy, not too nice, and margins have held up. Mid and smallcap IT names may see sooner development as purchasers undertake AI and firms pivot. Our choice is for faster-growing midcaps, even when valuations are excessive, as a result of development can justify them.”
He added that whereas massive IT corporations might even see single-digit development, midcap gamers are positioned for double-digit growth as a result of agility, AI adoption, and robust consumer wins.
AI Transition in Indian IT
Tibrewal expressed cautious optimism about AI adoption: “Indian IT missed reinvesting money flows into new disruptions over the past decade. Massive corporations might wrestle to pivot totally, however smaller corporations may emerge with a stronger AI focus.”
Capital Markets and Non-Lending Performs
Highlighting capital markets, he stated: “Non-lending performs like AMCs, depositories, exchanges, and distribution platforms have finished effectively. Some confirmed sturdy numbers this quarter regardless of restricted mark-to-market features. Over three to 5 years, these franchises ought to profit from a rising market.”
Non-public Banking Outlook
On personal banking, Tibrewal shared: “We’ve a constructive bias. NIM contraction is behind us. FY27 may see personal banks develop 20%. This 12 months is consolidation, however earnings development ought to resume as deposits get repriced.”
Metals and Exhausting Property
Tibrewal stays bullish on laborious property amid international provide constraints: “Commodities at the moment are geopolitical instruments, with provide concentrated in few nations. For instance, copper demand over the following 18 years may match what was mined in 10,000 years. Metals like copper and aluminum will stay in tight provide, supporting long-term costs.”
Market Breadth and Index Restoration
Regardless of sectoral optimism, index-level features stay muted: “Small and midcaps have been in hibernation for 15–16 months. NSE 500 is close to highs, however breadth is weak. Subsequent 12 months, earnings development ought to transfer into double digits, led by banking, autos, and energy, which may push markets greater. FII shopping for resuming would assist sentiment.”
Tibrewal’s commentary means that whereas largecap IT and midcaps observe completely different development paths, personal banking, capital markets, and laborious property are poised to learn from structural modifications, creating alternatives for affected person buyers.
