Top fund houses turn overweight on capital goods amid capex revival signs

Money managers raise their bets on L&T and NTPC

With capacity utilization showing improvement, money managers are raising their bets on the capital goods space. According to data collated by Edelweiss, top-five fund houses’ average overweight on capital goods stood at 536 basis points (bps) vis-a-vis Nifty 200. This was the highest overweight seen in the last three months.

Fund managers are of the view that the recovery in private capex cycle is not far away with a huge capex deficit that needs to be bridged. “Due to several macro variables in the last five years, the capex cycle has remained depressed. Going ahead, India’s GDP is expected to