What is the HALO concept in Indian markets?

HALO stands for Heavy Assets Low Obsolescence, a term coined by JP Morgan to describe sectors with stable, hard assets that are not easily affected by market sentiment.

Which sectors are driving India's value boom?

Public sector banks and metals have been the primary drivers of India's three-year value boom.

What factors are contributing to the outsized returns in Indian sectors?

Economic expansion, supportive policy tailwinds, and a re-rating of these sectors are driving outsized returns.

Home / Business and Economy / India's Value Boom: PSU Banks & Metals Shine

India's Value Boom: PSU Banks & Metals Shine

27 Feb

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Summary

PSU banks and metals lead India's value boom.
The HALO concept describes stable sectors with hard assets.
Economic growth and policy aid drive sector returns.

India's Value Boom: PSU Banks & Metals Shine

A significant value boom has been observed in India over the past three years, with public sector banks and metals leading the charge. This trend has significantly outperformed momentum strategies and the broader Nifty index. Financial markets are increasingly embracing the "HALO" (Heavy Assets Low Obsolescence) concept, coined by JP Morgan. This framework is seen as accurately describing sectors resistant to fleeting market sentiment.

The HALO sectors include traditional industries like metals, gold, rare earth, power, and oil. In the Indian context, public sector banks are also considered part of this category due to their substantial asset backing. These sectors are characterized by their tangible assets and inherent stability, making them attractive investments.

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