Daijiworld Media Network – Mumbai

Mumbai, Feb 27: Veteran investor Ramesh Damani has said that sectors such as defence, metals, mining and pharmaceuticals could present compelling investment opportunities, even as global markets remain captivated by artificial intelligence-led themes.

Damani pointed to two emerging global trends. First, nations are increasingly seeking to localise defence production rather than depend solely on a rules-based, American-led global security framework. Second, there is a growing emphasis on domestic manufacturing, encompassing local mining, metals sourcing and supply chain development.

He noted that these structural shifts are likely to benefit sectors linked to physical capabilities and domestic production. Investors who feel markets are underperforming may be looking in the wrong pockets, he suggested, adding that segments like metals, pharmaceuticals and defence have already witnessed meaningful appreciation.

At the same time, Damani said artificial intelligence and enterprise software are likely to coexist rather than compete in a zero-sum manner. AI, he observed, is expected to function alongside existing systems instead of completely replacing them.

Drawing parallels with past technological transitions, he cited the computerisation of the Bombay Stock Exchange in the mid-1980s as an example of how innovation reshaped markets over time while still expanding overall participation.

According to Damani, equity markets tend to move in cycles rather than in a straight trajectory, and the present environment reflects a phase of sectoral rotation. He emphasised that opportunities could emerge in sectors aligned with domestic manufacturing and strategic capabilities, even as AI continues to dominate global investment narratives.