FUND VIEW-ICICI Pru Life bets on Indian banks, shuns realty
* Says credit growth to revive as capex picks up
* Also favours power and power equipment suppliers
* Wary of real estate firms' valuations
By Nishant Kumar
MUMBAI, Nov 19 (Reuters) - Financial sector stocks could lead the Indian share market's rise over the next three to five years as banks benefit from the country's growing savings rate and a rebound in economic activity, a top fund manager said.
Manish Kumar, who oversees 500 billion rupees ($10.8 billion) as head of investments for ICICI Prudential Life Insurance Co, said he also favoured power and related engineering firms but is wary of real-estate companies given their lofty valuations.
Among the top-10 holdings in his Maximiser Fund, are State Bank of India (SBI.BO: Quote, Profile, Research), the country's top lender, HDFC Bank (HDBK.BO: Quote, Profile, Research) and Axis Bank (AXBK.BO: Quote, Profile, Research), in keeping with the fund's overweight stance on the financial sector.
"That is a call we have maintained," Kumar told Reuters in an interview on Thursday.
He said banks' earnings could be muted in the near term as treasury income dwindles and credit growth takes some more time to revive significantly. Continued...
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