DSP CIO shifts India equity focus to domestic financials, cement, and autos

Anish Tawakley warns that the era of simultaneous revenue and margin expansion is over, urging investors to pivot toward large-cap domestic plays while avoiding smaller peers with accounting red flags.

By Handelsavisen Newsroom · Automated 2026-06-29 00:36 UTC · 1 min read

Anish Tawakley, chief investment officer at DSP Asset Managers, has outlined a strategic pivot for Indian equity portfolios, signaling that the next phase of market growth will be driven by top-line revenue expansion rather than margin improvement.

Tawakley advised investors to abandon the expectation of a "double benefit" from both revenue and profit margins, a dynamic that has characterized much of the recent bull run in Indian markets.

The CIO’s latest stance favors large-cap stocks over smaller peers, citing growing concerns over accounting integrity in the small-cap segment.

Tawakley highlighted specific red flags in the financial reporting of smaller companies, suggesting that governance risks are outweighing potential growth premiums in that space.

This caution marks a notable shift in risk appetite among major asset managers as market valuations stretch.

Sectorally, Tawakley is overweight domestic-facing industries, specifically domestic financials, cement, and automobiles.