It's time to invest in equities, not hold cash, says Renaissance's Pankaj Murarka

Pankaj Murarka, CEO and CIO of Renaissance Investment Managers, which manages assets worth over $195 million as of April 30, 2026, says India's macro shock is a buying opportunity, not a reason to hide in cash

Murarka said that the recent macro concerns, including rising United Spirits and global uncertainty, may create short-term pressure on corporate earnings, but they are also opening up investment opportunities in equities. “It's time to be invested into equities, not holding that cash back,” he added.

He believes India is entering this period from a position of strength, supported by resilient macroeconomic fundamentals and prudent fiscal management over the past decade. While external shocks may affect earnings over the next couple of quarters, Murarka said India’s economy has the ability to absorb disruptions better than in the past.

According to him, the recent market phase has also improved valuations in several sectors, prompting the firm to shift towards a more aggressive portfolio stance after maintaining a defensive approach for over a year.

“It is time to be overweight equities, and probably slightly more aggressive,” Murarka said.

Financials remain the fund's largest sectoral bet. Banks — both large-cap and select mid-cap names — have been under pressure from rising oil prices and macro uncertainty, but Murarka sees that as an entry point, not a warning sign.

Asset quality across India's banking sector is holding, credit growth is recovering after two soft years, and valuations have come down to levels he describes as "very compelling."

Consumer discretionary and autos are his second major theme. Murarka is deliberate about which end of the consumption spectrum he's targeting. India's demand picture is K-shaped, he says — robust at the top of the income ladder, strained at the bottom.

He's playing the upper end. Specific names he flagged: Crompton Greaves, Jubilant FoodWorks Consumer Electricals, and

Tata Consumer Products — the latter a name he acknowledges hasn't performed well recently but one he holds with conviction. Godrej Consumer and Godrej Consumer

, mentioned in prior appearances, remain in focus.

IT services stays in the portfolio, without fanfare. Murarka offered no dramatic pivot away from the sector.

On the broader market outlook, Murarka expects investors to look beyond weak near-term earnings and focus on a stronger recovery in the second half of the financial year and into next year. He argued that periods of moderate earnings growth are often followed by a catch-up cycle, especially when the economy continues to expand steadily.

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