Why a Rs 72,000 crore fund manager refuses to chase power and defence rally now (opens original article in a new tab)

A ₹72,000 crore fund manager cautions against overvalued power and defense stocks, favoring banking and export sectors instead

• ICICI Prudential's fund manager warns that power and defense stocks are overvalued with little margin for error
• The fund maintains dynamic equity-debt allocation, currently at 73-75% equity
• The manager prefers banking, discretionary consumption, and export-oriented sectors over PSU defense and power stocks
• Valuations in defense and power sectors have priced in significant future growth, reducing attractiveness for new investments
• The fund has reduced REITs exposure due to improved valuations and compressed yields