Nikhil Kamath Highlights Investment Opportunities in Clean Energy and IT Sector
Investment Trends in Clean Energy
Nikhil Kamath, co-founder of Zerodha, has pointed out that the global transition to cleaner energy is becoming a significant investment focus. He believes that recent geopolitical events have reinforced the potential for businesses involved in the energy transition ecosystem. In an interview with Bloomberg Television's Minmin Low, Kamath emphasized the importance of sectors related to electric mobility, battery manufacturing, transmission networks, and grid infrastructure, which continue to capture his interest. He noted that the ongoing tensions between the United States and Iran have heightened concerns about energy security, underscoring the need for more sustainable and resilient energy systems in the long run.
Kamath remarked that geopolitical instability often accelerates transformative changes in the global energy sector. As nations strive to minimize their reliance on traditional fuel sources, industries that support electrification and renewable energy infrastructure are likely to see increased investment. Sectors involved in electric vehicles, advanced battery technologies, and grid modernization are poised to benefit as governments and corporations emphasize long-term energy resilience. He suggested that the renewed emphasis on energy independence could open up numerous opportunities across the entire value chain.
Opportunities in the IT Sector
While the energy transition is a prominent theme, Kamath is also identifying potential in India's information technology sector, which has underperformed this year. He stated, "Some well-managed IT services firms in India are currently undervalued and appear attractive." The sector has lagged behind the broader market due to concerns regarding global economic growth and reduced technology spending. However, Kamath believes that the recent market correction has resulted in appealing valuations for select companies with solid fundamentals and established business models.
He also highlighted improving conditions for Indian equities, noting that declining crude oil prices and the recent depreciation of the rupee have made several stocks more appealing after a prolonged period of poor performance.
Challenges in Indian Markets
In 2026, Indian markets have encountered various challenges, including geopolitical tensions in the Middle East, ongoing foreign institutional investor outflows, high commodity prices, and sluggish earnings growth. This year, foreign investors have withdrawn over $29 billion from Indian equities, although recent policy initiatives aimed at stabilizing the currency have sparked some renewed buying interest.
Despite the significant outflows, Kamath contended that foreign investors often struggle to pinpoint the optimal entry and exit points in the Indian market. He remarked, "Foreign funds don't have a history of timing Indian markets effectively." They tend to exit when valuations are favorable and re-enter after markets have already surged. Reflecting on this pattern, Kamath expressed hope that history might repeat itself.