Renaissance Investment CIO Pankaj Murarka Predicts IT, Consumption Turnaround by 2026

• Pankaj Murarka, CIO of Renaissance Investment Managers, foresees Indian IT stocks recovering due to attractive large-cap valuations and early signs of discretionary spending revival.
• He advocates a barbell strategy for IT, favoring undervalued large-caps and remaining constructive on mid-caps despite their high valuations.
• Murarka has shifted to a positive outlook on consumption after six years, finding value in consumer names like Tata Consumer and Godrej Consumer, supported by policy measures and economic recovery.
• Deep value opportunities are identified in state-owned enterprises and financials, leading to investments in public sector banks, power finance companies (REC, PFC), and utilities (NTPC).
• He expresses caution on defense stocks due to stretched valuations, noting they have already priced in significant future growth.

Why It Matters: Pankaj Murarka expects IT and consumption sectors to rebound by 2026, driven by value and economic recovery.