Ramesh Damani Identifies Defence, Minerals, and Infrastructure as Top Themes Amid Steady Market Gains

Market Expert Predicts Stable Period of Gains Ahead

Veteran investor and BSE member Ramesh Damani expects a more stable period of gains over the next three to six months, as he believes the worst phase of geopolitical disruption is now behind markets. Damani has identified defence, critical minerals, and infrastructure as key investment themes.

Damani expects markets to transition from the sharp, volatile swings seen over the past few months to a more measured trajectory. He predicts a period of gains in the next quarter or six months as opposed to the very sharp moves that were experienced in the last three months.

Damani reiterated his long-standing preference for defence, alongside critical minerals and infrastructure. He also indicated that defence -- particularly newer segments -- is gaining greater prominence. The changing nature of global conflict is reshaping investment opportunities, with recent geopolitical developments showing a need for "asymmetrical warfare", where low-cost technologies such as drones and precision systems are increasingly replacing traditional heavy military equipment.

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

Reflecting this shift, Damani has increased exposure to companies linked to emerging defence technologies, particularly in the private sector, while booking some profits in public sector names. He has made significant bets in the defence space, including missile, drone, and laser systems.

Beyond defence, Damani pointed to the growing importance of localising supply chains as a structural trend. Countries are increasingly looking to reduce dependence on extended global supply chains and build domestic capabilities in raw materials and manufacturing. This creates opportunities not just in critical minerals but also in basic materials such as copper and aluminium, where domestic producers could play a larger role.

Damani also stated that the market's heavy focus on foreign institutional investor (FII) flows is overstated. He believes that investors should focus more on price trends and market behaviour, and that domestic flows have become increasingly important in recent years and should be viewed on par with foreign capital.

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline