Aniruddha Naha of PGIM India has reiterated his preference for public sector undertaking (PSU) banks over private sector lenders, citing the segment's relative attractiveness in the current market environment. PGIM India Asset Management, the Indian arm of Prudential Financial's global investment management business, has been a growing player in the domestic mutual fund industry.

In a segment aired on CNBC-TV18, Naha outlined his investment approach, pointing to several structural themes that he believes offer long-term growth potential. Specifically, he highlighted the cables and data center segments as areas of interest, along with the Room Air Conditioner (RAC) category.

PSU banks have been a focal point for several market participants, as state-owned lenders have seen improved financial metrics and valuations compared to their private sector counterparts. India's PSU banks have benefited from a multi-year cycle of declining gross non-performing assets, strengthened balance sheets following government capital infusion, and robust credit growth. Naha's continued backing of the PSU banking space aligns with the view that these institutions are positioned to benefit from ongoing economic momentum, even as some investors have rotated toward private banks on valuation comfort.

On the thematic side, the cables and data center segments have drawn increasing attention from investors as demand for digital infrastructure continues to expand. Data center capacity build-outs in India have accelerated, driven by growing cloud adoption, artificial intelligence workloads, and enterprise digitization. The sector has also attracted significant capital commitments from both global hyperscalers and domestic conglomerates, with Mumbai, Chennai, and Noida emerging as key hubs. Government initiatives, including infrastructure status for data centers in several states, have further supported the investment case. The cables sector, which supplies critical components for power transmission, telecom networks, and data center connectivity, is seen as a key enabler of this infrastructure push and has experienced consolidation and capacity expansion among listed players.

The RAC segment has also posted robust growth, supported by rising disposable incomes, urbanization, and demand for cooling solutions across residential and commercial markets. India's increasingly severe summer heat waves have further intensified penetration-driven demand, as air conditioners remain underpenetrated relative to other consumer durables in large parts of the country.

Naha explained his broader investment philosophy during the discussion, emphasizing a disciplined approach to identifying opportunities across these themes.

Source: CNBC-TV18