Mumbai, June 29 -- Anish Tawakley, chief investment officer (CIO) of DSP Asset Managers, believes investors should no longer expect the double benefit of simultaneous revenue and margin expansion. Instead, he said, the next phase of growth will be driven primarily by a healthy revenue environment as profit margins have already peaked in most sectors, leaving limited room for further expansion.

Tawakley favors financials, cement and autos as direct beneficiaries of robust domestic spending and credit growth. While he also likes the cyclical earnings outlook for capital goods, he advises strict selectivity given the sector's elevated valuations.

Edited excerpts from an interview:

Our view on the economy is positive, and we expect healthy...