'Growth in Financials, IT and Energy key to recovery'

Rohit Singhania, Co-Head (Equities) at DSP Mutual Fund, manages four schemes at DSP, of which the DSP ELSS Tax Saver Fund and DSP Large & Midcap Fund have earned four-star ratings from Value Research. In this interview, he discusses the DSP ELSS and DSP Focused funds' consistent outperformance, among many other topics. Below is the edited transcript. What key factors will drive market momentum or support growth going forward? For the Indian equity market to regain sustained momentum, strong performance from key sectors - Financials, IT and Energy is essential. These sectors make up a large share of overall earnings and index weight, but each is facing specific headwinds. Banks are dealing with pressure on net interest margins due to rising funding costs and intense competition. IT companies are seeing weaker demand from global clients, especially in the US and Europe. Energy and materials firms remain exposed to global growth concerns and commodity price swings. (Which is why) we expect another round of earnings downgrades this quarter as analysts adjust forecasts for slower growth and margin pressure. This may put further pressure on the valuations, especially for expensive stocks. Why has the DSP ELSS Fund delivered consistently since 2021? The steady performance of the DSP ELSS Fund reflects the consistent application of an investment framework I've followed over 15 years of managing money. At its core, this approach is built around understanding the businesses we invest in, staying mindful of valuations and not getting distracted by daily market noise. In the last couple of years, ca