HDFC Asset Management Company's Managing Director and CEO Navneet Munot has expressed strong confidence in India's structural growth story, describing the country as a "stock picker's paradise" ahead of Budget 2026. Speaking at the ET Budget Boardroom event in Mumbai, Munot emphasized the importance of policy continuity and sustained reforms in maintaining India's growth momentum.
Policy Continuity and Reform Momentum
Munot praised the government's consistent approach, highlighting that Budget 2026 marks the ninth consecutive budget presentation by Finance Minister Nirmala Sitharaman. He noted that the government has maintained reform momentum without waiting for Budget Day, implementing measures across GST simplification, labour codes, and other structural improvements.
The HDFC AMC chief emphasized that despite global uncertainties, India has continued growing at over 8%, demonstrating resilience in challenging international conditions. He particularly commended the government's decision to present the budget on a Sunday, viewing it as a symbol of the administration's commitment to working continuously for national development.
Market Performance and Investment Flows
Addressing market dynamics, Munot highlighted several key trends shaping India's investment landscape:
| Market Indicator |
Performance Details |
| Nifty Returns |
Tenth consecutive year of positive returns |
| DII Investment |
Close to $250 billion invested over last five years |
| FII Position |
Net sellers during the same period |
| Smallcap Performance |
Underperformed due to earlier outperformance requiring valuation adjustment |
Munot acknowledged that while Indian markets have underperformed some global markets due to the AI investment chase, he believes India will emerge as a significant beneficiary in the AI ecosystem. He positioned India as potentially becoming the "use-case capital of the world" for AI applications, creating substantial opportunities for corporate productivity enhancement and market expansion.
Sectoral Opportunities and Manufacturing Focus
The fund manager emphasized India's diverse investment opportunities across sectors, driven by an economy serving 1.4 billion consumers. He highlighted government initiatives supporting manufacturing growth:
- Corporate tax reduction measures
- Production Linked Incentive (PLI) scheme implementation
- Logistics infrastructure improvements
- Indigenization and procurement from Indian companies
- Energy transition and EV adoption initiatives
- Semiconductor manufacturing promotion
Munot stressed that these measures across manufacturing, energy transition, and new-age technologies position India to participate in multiple growth opportunities spanning various sectors.
Budget Expectations and Policy Recommendations
The HDFC AMC CEO outlined three key expectations from Budget 2026:
| Priority Area |
Recommendation Details |
| Asset Monetization |
Introduce Section 54F-like incentives to channel investments from gold, silver, and land into long-term equity |
| Skill Development |
Substantially higher investment in PM Vishwakarma scheme to prepare for AI-driven labor market changes |
| Technology Investment |
Increased allocation for AI and R&D to establish India as a global leader |
Munot particularly emphasized the potential of unlocking trillions of dollars currently locked in physical assets like gold and silver, noting that India imports large quantities of these metals annually. He suggested fiscal incentives could redirect this wealth toward capital markets, benefiting overall economic growth.
Future Growth Drivers
Looking ahead, Munot expressed confidence that continued government focus on capital expenditure, fiscal consolidation, and RBI support through liquidity measures and interest rate adjustments will collectively drive higher earnings growth. He emphasized that India's structural advantages, combined with ongoing reforms and the potential AI revolution, create a favorable environment for long-term investment opportunities across multiple sectors and market segments.
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