Forget Roti, Kapda, Makan—Nilesh Shah Says These Sectors Will Power India’s Next Bull Run

In today's fast-paced market, the idea of discovering a "hidden gem" isn't about unearthing something completely unknown — it's about recognising potential early and making a smart bet.

Nilesh Shah, Managing Director at Kotak Mahindra Asset Management Company, told Republic Business, “This is today’s world, where even the smallest of news gets circulated very quickly. It’s not about finding something hidden anymore. It’s about assessing a stock or sector and taking a call on its future potential.”

According to Shah, several sectors in India currently show strong promise, particularly consumer discretionary, banking and financial services, and chemicals.

Which Sector Could Surprise Investors

Shah strongly believes the consumer discretionary sector is poised for growth, driven by multiple economic triggers that are expected to boost spending power in the hands of the Indian consumer.

Here's what’s working in its favour:

In the 2025-26 Union Budget, the government increased the income tax rebate limit from Rs 7 lakh to Rs 12 lakh per year. For salaried individuals, this effectively goes up to Rs 12.75 lakh with the standard deduction. This move is expected to leave an extra Rs 1 lakh crore in taxpayers’ hands during FY26.

At the same time, interest rates have dropped by 1%, which will put roughly another one lakh crore in the pockets of borrowers. According to SBI, the recent CRR cut will add about Rs 2.5 lakh crore in liquidity to the banking system by December 2025, helping boost lending and economic activity.

If global crude oil prices continue to fall, petrol and diesel prices in India may also drop, giving more relief to household budgets.

On top of that, the 8th Pay Commission is likely to be implemented in 2026 and take effect in 2027. This will further increase the incomes of government employees, adding to overall consumer spending power.

“All this is going to put money in the pockets of consumers,” Shah explains. “And they are likely to spend that money on experiences — airline tickets, tourism, travel, education, healthcare, and entertainment — rather than on Roti, Kapda, Makan.”

Also Read: Which Government Schemes Offer Higher Returns Than Fixed Deposits?

Betting On Entrepreneurs

This shift in consumption patterns indicates a major opportunity for businesses operating in areas like aviation, hospitality, online education, healthcare services, and more.

Beyond sectors, Shah emphasises the importance of backing strong entrepreneurs. “You are betting upon an entrepreneur who has vision, execution capability, and governance,” he notes. 

Identifying companies with strong leadership can be just as important as spotting industry trends.