Metal Stocks Could Be on a Multi-Year Rally: Bajaj AMC's Nimesh Chandan
Key Takeaways
- •Nimesh Chandan, CIO of Bajaj AMC, believes Indian metal stocks could be in the early stages of a multi-year rally tied to a global metals supercycle.
- •He expects Nifty earnings to grow 12-13% this year, supported by strong domestic economic conditions.
- •Chandan favours diversified sugar companies with revenue from ethanol production and bagasse-based power generation, such as Balrampur Chini Mills, Shree Renuka Sugars, and Bajaj Hindusthan Sugar.
- •He continues to hold HDFC Bank despite leadership uncertainty, as the bank has had no formally appointed CEO since October 2024, with incumbent Sashidhar Jagdishan's tenure extended until October 2025.
- •Indian benchmarks Nifty 50 and Sensex have swung on global developments even as domestic earnings growth and macroeconomic indicators remain supportive.
Bajaj Asset Management's Chief Investment Officer, Nimesh Chandan, has said that metal stocks in India could be in the early stages of a multi-year rally, as he continues to bet on a global metals supercycle despite turbulent headlines from overseas markets.
Chandan, who oversees investment strategy at Bajaj AMC, one of India's asset management companies, told CNBC-TV18 that India's domestic economic setup remains strong. He expects Nifty earnings to grow 12-13% this year, even as external newsflow continues to drive volatility in the markets.
Bullish on a metals supercycle
Chandan said he remains bullish on the thesis of a metals supercycle — a prolonged period of rising demand and prices for commodities such as copper, aluminium, and steel. The supercycle thesis has drawn attention in recent years as global energy-transition projects, including electric vehicles and renewable-power infrastructure, are metals-intensive, alongside continued infrastructure spending in major economies. Companies frequently associated with this theme in India include Hindustan Copper, HEG, and Graphite India.
Sugar and financials
Beyond metals, the CIO said he favours diversified sugar plays — companies with revenue streams beyond sugar, such as ethanol production for India's fuel-blending programme and power generation from bagasse. Prominent names in the sector include Balrampur Chini Mills, Shree Renuka Sugars, and Bajaj Hindusthan Sugar.
On financials, Chandan said he continues to hold HDFC Bank, India's largest private sector bank, despite uncertainty surrounding its leadership succession. The bank has been without a formally appointed chief executive since October 2024, when the Reserve Bank of India approved an extension for incumbent Sashidhar Jagdishan until October 2025 while the board's search for a successor continued.
His comments come at a time when Indian equity benchmarks, the Nifty 50 and the Sensex, have been swinging in response to global developments, even as domestic corporate earnings growth and macroeconomic indicators remain supportive.
Source: CNBC-TV18
