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News › Financials  ·  16 Jun 2026, 1:23 PM IST  ·  3 months ago

NBFCs, Private Banks Favored; IT, PSU Banks Cautious: Abakkus Analyst

Bias: Bullish +4090% confidenceFinancialsEnergyBearish read

In one line — Maintain a bullish bias on private banks and NBFCs, looking for dips to accumulate, while being selective and cautious on PSU banks.

Bearish
Bullish
−1000+40 ●+100

Source: Economic Times · AI-summarised by Anadi · Updated 16 Jun 2026, 1:50 PM IST

Financialstilt negative
Energytilt negative
Pharmaceuticalstilt negative
Manufacturingtilt negative
Information Technologytilt negative

What Happened

Aman Chowhan of Abakkus Asset Manager has outlined his investment preferences, favoring NBFCs and private banks over PSU banks, and highlighting defensive and structural themes like renewables, pharma, and domestic manufacturing. He also flagged crude oil as a significant macro risk that could impact corporate earnings by 100-200 bps and expressed caution on the IT sector due to AI and valuation concerns.

Why It Matters (for you)

This analysis provides a clear directional bias from a prominent asset manager, influencing investor sentiment and capital allocation. The emphasis on crude oil's impact on corporate earnings is crucial for overall market profitability, while the sector-specific calls offer actionable insights for portfolio adjustments, especially contrasting with some previous positive views on PSU banks.

Impact on Indian Markets

Private banks like HDFCBANK and ICICIBANK, along with NBFCs, are likely to see positive sentiment. Renewable energy, pharma (e.g., SUNPHARMA, DRREDDY), and domestic manufacturing stocks could also benefit. Conversely, PSU banks (e.g., SBI, PNB) and IT majors (e.g., TCS, INFY, WIPRO) may face selling pressure or underperform due to the cautious outlook and potential earnings impact from crude oil.

What Traders Should Watch Next

Traders should monitor crude oil price movements closely for their potential impact on corporate margins. Observe FII/DII flows into the favored sectors (private banks, renewables, pharma) and out of the less favored ones (IT, PSU banks). Look for earnings reports in the coming quarters to validate the projected 100-200 bps impact from crude oil and assess the actual performance of IT companies amidst AI developments.

Key Evidence

  • Aman Chowhan of Abakkus Asset Manager highlights crude oil as the dominant macro risk.
  • Crude oil could impact corporate earnings by 100-200 bps in upcoming quarters.
  • He favors defensive and structural themes: renewables, pharma, and domestic manufacturing.
  • He remains cautious on IT due to AI and valuation concerns.
  • He states NBFCs and private banks are better positioned than PSU banks.