Global remained caught between geopolitical uncertainty, rising sovereign bond yields and strong artificial intelligence earnings through August 2026. Despite heightened tensions in West Asia and concerns around global growth and interest rates, equity markets remained relatively resilient.
Quant Mutual Fund noted in its September 2026 factsheet that “global equity indices traded largely flat through August”. In India, the Index corrected 1.2%, while broader markets posted marginal gains.
Meanwhile, precious metals and cryptocurrencies stood out. Bitcoin, Silver and Gold gained 25%, 15% and 10%, respectively, during August 2026, according to the fund house.
Against this backdrop, Quant Mutual Fund has highlighted a shift in its sector positioning, with a cautious stance on manufacturing and greater exposure to IT services.
For , the key takeaway is not to chase these sectors, but to understand where fund managers see risks and opportunities.
Why is Quant MF cautious on manufacturing?
The fund house stated, “We are relatively underweight on manufacturing companies because of uncertainty related to input costs and supply chains”.
For investors, this highlights two risks to watch in manufacturing companies. Higher raw-material costs can put pressure on profit margins, while supply-chain disruptions can affect production and delivery timelines.
Why is the fund house increasing exposure to IT services?
Quant MF noted that it has increased its exposure “towards IT Services companies, as they were entering neglected territory”.
Despite geopolitical uncertainty and rising global debt, the factsheet noted that “the tech world continues to drive its own agenda”, with quarterly results providing relief to investors amid concerns over rising capital expenditure.
“The world’s primary Hyperscalers—Amazon, Alphabet, Meta, and Microsoft—collectively spent over $1 trillion on AI infrastructure since 2023, and their combined global investments in capex are projected to exceed $1 trillion annually between 2026 and 2027,” the factsheet mentioned.
Quant also pointed to a shift in market preferences around AI. “Since April 2026, the noise about how AI is the biggest thing has been surrounding us from all directions,” the fund house added. It believes India’s relatively lower exposure to the crowded AI trade could support its performance.
Which other sectors does Quant remain positive on?
The fund house continues to remain constructive on other sectors, including:
- Energy
- Large infrastructure
- Select NBFCs
- Asset management companies (AMCs)
- Auto ancillaries
- Hotels
- Pharmaceuticals
- Telecom
- Data centres
What are the key takeaways for investors?
Quant Mutual Fund mentioned that India’s lack of exposure to AI and its dependence on high-ticket imports such as oil and gold have weighed on broader market sentiment.
However, it remains positive on India, stating that “the upcoming decade belongs to India” and that global capital will continue to view the country as a favourable destination.
The latest earnings season also pointed to healthy corporate growth and profitability. The Q1 FY27 profit growth stood at 14% for the Nifty, 27% for the Nifty Next 50 and 38% for the Nifty Midcap indices, excluding oil marketing companies.
Looking ahead, the fund house expects consolidation to deepen across large-cap and blue-chip stocks. In this environment, it believes alpha will increasingly come from bottom-up stock-specific opportunities in the micro-, small- and mid-cap segments.
Quant mentioned that its portfolio strategy is focused on under-owned, under-researched, under-valued, and neglected territory stocks. For investors, the broader takeaway is to look beyond popular themes.
Disclaimer: This is purely for educational/informational purposes and should not be taken as any sort of investment advice. Always consult a SEBI-registered advisor before making any investment decisions.