India's second-largest money manager ICICI Prudential Asset Management, with 11.8 trillion rupees ($123 billion) in assets, is bullish on banks, power utilities, oil refiners and drugmakers. CIO Sankaran Naren says attractive valuations for lenders, rising power infrastructure demand and healthcare growth make these sectors compelling despite global volatility.

Banking remains "one of the most attractive sectors," Naren said, as corporate earnings recover — over half of NSE Nifty 50 companies beat June-quarter profit estimates. The benchmark Nifty is on track for a second monthly gain, aided by foreign inflows and a software stock recovery. However, Brent crude above $90 a barrel poses risks; if it reaches $100, markets may assign lower valuations.

Naren's $9 billion Multi Asset Fund, which has beaten 95% of peers over five years, is overweight lenders and added Kotak Mahindra Bank, HDFC Bank and Union Bank of India recently. Prolonged foreign selling — $6.5 billion in March — pushed the Nifty Bank index near bear-market territory; it has rebounded 13% but trades at a 20% discount to long-term price-to-book value.

Outside financials, Naren sees opportunities in power and pharmaceuticals, citing rising electricity consumption driving grid investment and drugmakers benefiting from competitive exports and domestic demand. "Pharma has consistently delivered for us," he said.