Indian Stocks to Get Lift From Modi Stimulus, Says Kotak Mahindra AM Chief
Kotak Mahindra Asset Management's Nilesh Shah argues India's government stimulus will fuel domestic consumption and corporate earnings, supporting the country's stock market.
Could government stimulus be the jet fuel for India's stock market? The head of one of the country's largest asset managers believes so. According to a December 24, 2025 report from Nikkei, Nilesh Shah, president of Kotak Mahindra Asset Management, argued that a government economic stimulus plan will support the country's equities by fueling domestic consumption and corporate earnings.
Stimulus-Fueled Consumption to Drive Growth
Shah's bullish case rests on a straightforward economic sequence. He projects that the government's stimulus measures will directly boost rising domestic consumption. This increase in consumer spending is expected to translate into higher corporate revenues and profits, which in turn provides a solid foundation for stock market growth. For Shah, this virtuous cycle makes Indian stocks an attractive proposition on a 'risk-return' basis.
Key Themes: Consumption and Manufacturing
In line with this outlook, Kotak Mahindra Asset Management has identified consumption and manufacturing as its key investment themes. These sectors are positioned to be the primary beneficiaries of the government's economic agenda. The firm is betting that companies in these areas will lead the market as domestic demand strengthens, bolstered by India's vast and youthful population.
Investing in emerging markets involves significant risks, including high volatility, political instability, and currency fluctuations. Investors should exercise caution.
This content is AI-generated based on source articles. While we strive for accuracy, errors may occur. We recommend verifying with the original source.
Related Articles
Arif Habib Consortium has won the bid to acquire 75% of Pakistan International Airlines for $482 million. The sale is a key part of the IMF's conditions for a $7 billion loan program and serves as a major test for Pakistan's wider privatization drive.
Pakistan stockbroker Arif Habib Consortium has won the bid to acquire a 75% stake in Pakistan International Airlines for $412 million. The sale is a key part of the country's $7 billion IMF loan program and a litmus test for further privatizations.
India's quick commerce sector is expanding beyond groceries to fashion, electronics, and services. But as competition soars, market consolidation is on the horizon.
Vietnam officially launches its dual-city International Financial Center (IFC) project, targeting full operation by 2030 to attract foreign capital and compete with regional hubs like Singapore.
Arif Habib Consortium has won the bid to acquire 75% of Pakistan International Airlines for $482 million. The sale is a key part of the IMF's conditions for a $7 billion loan program and serves as a major test for Pakistan's wider privatization drive.
Pakistan stockbroker Arif Habib Consortium has won the bid to acquire a 75% stake in Pakistan International Airlines for $412 million. The sale is a key part of the country's $7 billion IMF loan program and a litmus test for further privatizations.
India's quick commerce sector is expanding beyond groceries to fashion, electronics, and services. But as competition soars, market consolidation is on the horizon.
Vietnam officially launches its dual-city International Financial Center (IFC) project, targeting full operation by 2030 to attract foreign capital and compete with regional hubs like Singapore.