The global push towards energy transition has emerged as one of the most compelling investment themes for Nikhil Kamath, co-founder of Zerodha Broking, with the recent U.S.-Iran conflict underscoring the strategic importance of the sector and opening up opportunities across its value chain.
Speaking in an interview with Bloomberg Television's Minmin Low, Kamath said businesses linked to electric vehicles, battery manufacturing, power transmission and grid infrastructure are among the areas he is watching closely. The geopolitical tensions in the Middle East have reinforced the need for energy security and accelerated the long-term shift towards cleaner and more resilient energy systems, he indicated.
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Kamath is also taking a contrarian view on India's information technology sector, which has lagged the broader market this year. "Some really well-run IT services companies in India are cheap today and they look attractive," he said.
The Zerodha co-founder added that easing global crude oil prices and the recent weakness in the rupee have improved the outlook for Indian equities, with several companies now trading at significantly more attractive valuations following a prolonged period of underperformance.
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Indian markets have trailed many of their regional peers this year, weighed down by the Middle East conflict, sustained foreign fund outflows, elevated commodity prices and slower corporate earnings growth. Overseas investors have withdrawn more than a record $29 billion from Indian equities in 2026, although they have turned net buyers in recent sessions after a series of policy measures aimed at supporting the currency.
Despite the exodus, Kamath said foreign investors have historically struggled to time India's markets. "Foreign funds don't have track record of timing Indian markets well," he said. They often exit when valuations are cheap and return when stocks are expensive. "I hope, in a way, history repeats itself."
