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Sanjiv Bhasin, Director at IIFL Securities, recommends having L&T and Thermax in a portfolio. He also suggests considering Bharat Forge as a quasi-play on ABB. Bhasin believes that the capital goods sector, particularly capex, is a lucrative space. He mentions that L&T's announcement of a buyback at a high stock price reflects management confidence. Bhasin also expresses optimism about Diageo (United Spirits) and Radico Khaitan in the liquor industry.

Saurabh Mukherjea of Marcellus Investment Managers, expresses concerns about the broader PSU capex theme in India. He believes that the government's heavy spending on sectors such as roads, defence, and power is not supported by underlying tax collections. Mukherjea also discusses the potential performance of HDFC Bank and highlights the worries surrounding the PSU capex recovery. He mentions that the implosion in China could benefit India's economy, and expresses optimism about the Indian IT services industry.

FPIs have invested nearly $5 billion in infrastructure segments including capital goods, and construction and related sectors and a similar amount in FMCG, consumer durables and telecom over the past twelve months. In addition, the automobile sector, which is considered as nondiscretionary, has attracted $3.26 billion of investment. The cumulative weight of infrastructure and consumption play in the FPI equity portfolio reached a multi-year high of 29.6% at the end of the first fortnight of June 2023, the data from NSDL showed