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The next phase of India manufacturing: HDFC AMC’s Rakesh Sethia breaks down real winners in EMS, aerospace & auto

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The next phase of India manufacturing: HDFC AMC’s Rakesh Sethia breaks down real winners in EMS, aerospace & auto
India’s manufacturing sector is shifting from basic assembly to deep tech localization, driven by massive domestic demand and targeted policy incentives. In this exclusive interview, Rakesh Sethia, Fund Manager at HDFC AMC, breaks down the multi-year supercycle by explaining where the real structural winners lie across EMS, aerospace, and auto ancillaries, and how to navigate increasingly expensive valuations.

Edited excerpts from a chat with Rakesh Sethia:

How compelling is the India manufacturing story over the next 5–10 years, and what are the biggest structural triggers that can sustain this cycle?
We remain positive on India manufacturing over the next 5–10 years. The biggest structural advantage is India’s large domestic market. Outside China, India is now one of the few large demand pools across categories such as autos, mobiles, air conditioners, solar modules, motors, cement and steel. This scale allows companies to build volumes, localise vendors and gradually become cost competitive.The second driver is policy support through Production Linked Incentive (PLI), capex incentives, infrastructure spending and supply-chain realignment. The story is no longer only about low labour cost. It is now about domestic scale, improving technology depth, better infrastructure, targeted policy support and India’s gradual integration into global supply chains.

Which manufacturing sub-sectors currently offer the best risk-reward — capital goods, industrials, defence, EMS, auto ancillaries, railways, or chemicals?
Most of these manufacturing sub-sectors have structural tailwinds, but the risk-reward differs by valuation and execution visibility.
While we are selectively positive on capital goods and industrials because the cycle is supported by renewables, transmission, electrification, automation and data centres however valuations in general has become very expensive In Electronics Manufacturing Services (EMS), the opportunity is large, but we prefer companies that can move beyond assembly into components, design, testing and exports. In auto ancillaries, we like powertrain-agnostic businesses with higher content per vehicle, premiumisation and export relevance.

Defence and railways are structurally attractive, but valuations and execution cycles need to be watched carefully. Chemicals are more mixed. Commodity chemicals remain cyclical, while specialty chemicals and Contract Research, Development and Manufacturing Organisation still have long-term opportunities from supply-chain diversification.

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At the portfolio level, we are not buying only because a sector is attractive. We are focused on bottom-up selection: quality of business, return ratios, execution track record, margins, cash flow, balance sheet strength and valuation comfort.

EMS has emerged as a major market theme over the last two years. Do you believe the opportunity is still underpenetrated, or are valuations now running ahead of fundamentals?
We believe that the EMS opportunity is still underpenetrated, but stock selection is now very important.

The first phase of growth was largely around assembly. The next phase of value creation should come from backward integration into components. Some consumer EMS areas such as mobiles and AC assembly are now relatively more mature. But the component ecosystem is still at a very early stage. For example, PCB manufacturing in India is less than 1% of the US$100bn global market, while import dependence remains above 90%.

This is where the next growth leg can come from. Under the Electronics Manufacturing Services (EMS) scheme, ~₹55,000 crore of investment has already been committed across 46 applications. This should support deeper localisation and higher domestic value addition over time. The opportunity is large, but valuations already reflect a lot of optimism in some names.

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Are Indian EMS players now moving up the value chain beyond assembly into design, exports, and higher-margin manufacturing?
Yes, Indian EMS players are moving up the value chain, but this remains a gradual process.

India has moved beyond basic assembly in several areas. Companies are now doing PCB assembly, testing, box-build, tooling, plastics, chargers, battery packs, supply-chain management and early Original Design Manufacturer work. But India is still far from China or Taiwan, where component ecosystems, supplier clusters and design capabilities were built over decades.

The positive change is that policy support is becoming more targeted. ECMS is focused on components and sub-assemblies, while the India Semiconductor Mission is supporting fabs, display fabs, compound semiconductors, ATMP/OSAT and chip design.

The direction is positive, but value creation will be selective. Pure assemblers can grow revenues, but sustainable margins will come from companies that build localisation, design capability, testing depth, vertical integration and export relationships.

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Auto ancillaries remain a core manufacturing theme. How are you positioning the portfolio amid EV transition, premiumisation, and export opportunities?
Auto ancillaries remain a core manufacturing theme for us, but we are selective. Our positioning is towards companies benefiting from premiumisation, higher content per vehicle and exports.

We are not playing EV as a binary theme; we prefer powertrain-agnostic businesses. We also like segments where India has a durable advantage, such as forging, casting, machining and precision engineering. So, the focus is on durable growth, export relevance, execution quality and valuation comfort — not just the EV narrative.

Aerospace stocks have seen significant traction in the last 1–2 months. How strong is the tailwind for the sector and are valuations still attractive?
We like aerospace from a top-down perspective. India is one of the fastest-growing aviation markets globally, and local manufacturing of components is still at an early stage. Over time, this can become a meaningful opportunity as global Original Equipment Manufacturers (OEMs) diversify supply chains and Indian companies build precision manufacturing capabilities.

However, listed opportunities are still limited. A large part of the deeper aerospace manufacturing ecosystem is currently in private entities, including certain conglomerates that have stronger integration with OEM supply chains. In the listed space, there are only a few names. Some are too small, while valuations in others have already become expensive. So, the sector tailwind is strong, but public-market risk-reward is not uniformly attractive.

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Korea fines e-commerce giant $400m over data breach affecting millions

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The record fine comes after around 37.5 million users had their private data exposed.

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Dividend rush! Buy these 5 Adani stocks, 4 Tata Group stocks today to lap up payout rewards

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Dividend rush! Buy these 5 Adani stocks, 4 Tata Group stocks today to lap up payout rewards
More than 30 companies have set June 12 as the record date for their respective dividends cumulatively worth nearly Rs 300 per share. As many as five Adani Group companies and four Tata Group companies are part of the long list.

Only those shareholders who own the shares of the companies in their demat accounts as of Friday will be eligible to receive the bonus shares. Due to SEBI’s T+1 settlement norm, investors must buy a company’s shares at least one trading day before the record date to ensure they are credited to their demat accounts by that date and thus be eligible for the corporate action. This effectively makes today the last date for investors to buy the shares to be eligible for the dividends.

Adani Group stocks turning ex-record date for dividends tomorrow

ACC, Adani Enterprises, Adani Ports and Special Economic Zone (APSEZ), Adani Total Gas, and Ambuja Cements are the five Adani Group companies that have fixed June 12 as the record date for their respective dividends.

ACC late in April had announced a dividend of Rs 7.5 per share with a face value of Rs 10 each for the financial year 2026. APSEZ will also pay a dividend of Rs 7.5 per share. Shares of Adani Group’s flagship company, Adani Enterprises, meanwhile, are set to turn ex-record date to a dividend of Rs 1.3 per share tomorrow.

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Ambuja Cements and Adani Total Gas will pay dividends of Rs 2 per share and Rs 0.25 per share, respectively.

Tata Group stocks turning ex-record date for dividends tomorrow

Tata Motors, Tata Steel, Trent, and Voltas from the Tata Group also have fixed June 12 as the record date for their respective dividends, making today effectively the last day for investors to buy the stocks to be eligible for the payment.
Tata Motors, Tata Steel, and Voltas will each pay dividends worth Rs 4 per share, while Zudio and Westside-parent Trent will pay a dividend of Rs 6 per share. This comes after Trent shares turned ex-record date last week for its first-ever 1:2 bonus issue, causing the stock price to appear nearly 34% lower due to the adjustment.


Also read: Here’s how Trent’s bonus math works
Apart from the companies part of the two conglomerates, several other firms also have fixed June 12 as the record date for their dividends. Some of the notable names among them include Canara Bank (Rs 4.2 per share), ICICI Prudential Asset Management Company (Rs 12.4 per share), JM Financial (Rs 1.75 per share), Piramal Finance (Rs 11 per share), and Punjab National Bank (Rs 3 per share).Also read: Infosys, Adani Enterprises, Trent among 44 stocks going ex-date this week. Do you own any?

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

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Warner Bros Stock Hits 3-Month Low. The Paramount Merger Spread Is Too Good to Pass Up.

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Bonus bonanza! Last date to buy City Union Bank shares for 1:3 reward

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Bonus bonanza! Last date to buy City Union Bank shares for 1:3 reward
City Union Bank has set June 12 as the record date for its bonus issue in the ratio of 1:3, making today, June 11, the last day for interested investors to buy the bank’s shares to qualify for the bonus shares.

Only shareholders who hold City Union Bank shares in their demat accounts as of Friday will be eligible to receive the bonus shares. Due to SEBI’s T+1 settlement norm, investors must purchase the company’s shares at least one trading day before the record date so they are credited to their demat accounts by that date and qualify for the corporate action. This effectively makes today the final day for investors to buy the shares to be eligible for the bonus issue.

All about City Union Bank’s bonus issue

City Union Bank announced a 1:3 bonus issue in April, meaning eligible shareholders will receive one equity share for every three fully paid-up equity shares held in their demat accounts as on the record date.

The bonus shares will be issued using nearly Rs 25 crore from the lender’s securities premium account, whose balance stood at more than Rs 940 crore on March 31, 2026. Later in May, City Union Bank fixed June 12 as the record date to determine the eligibility of shareholders for the bonus shares.

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Notably, this marks the first bonus issue announced by the lender in eight years, since a 1:10 bonus issue in 2018. A bonus issue consists of free shares distributed by a company from its reserves and is often seen as a sign of strong financial health and growth prospects. While the issue of bonus shares increases the total number of outstanding shares, it does not change the company’s market capitalisation. However, it can improve liquidity and affordability, allowing more investors to add shares of the company to their portfolio.


Also read:
How Sensex, Nifty rallied 200% under PM Modi’s record-breaking tenure

City Union Bank share price

City Union Bank shares have gained 2% in one week, but declined 3% in one month. Shares of the company have fallen over 12% in 2026 so far. In the longer term, they’ve gained 23% in one year, 104% in three years, and 52% in five years.

The bank reported a 25% year-on-year rise in net profit to Rs 359.56 crore for the fourth quarter of FY26, up from Rs 287.96 crore reported in the corresponding quarter of the previous financial year. Its net interest income (NII), meanwhile, increased around 31% YoY to Rs 785.83 crore during the quarter under review.
Also read: Wipro’s Rs 15,000 crore buyback opens; 10 key things to know before tendering shares
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

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NYT Connections No. 1096 Solved for June 11 2026 with Clever Category Themes

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Nancy Guthrie

NEW YORK — The New York Times Connections puzzle for Thursday, June 11, 2026, delivered its 1,096th edition with four increasingly challenging word groups that tested players’ associative thinking and cultural knowledge. The daily game, which groups 16 words into four themed categories of four, continues to attract millions of solvers seeking a stimulating mental break.

Connections, launched alongside Wordle in the Times’ games portfolio, has become a morning staple for many. Puzzle No. 1096 featured a balanced mix of straightforward and more obscure connections, earning praise for its clever construction while remaining accessible to regular players.

Today’s Solution and Categories

The four groups in Connections No. 1096 were:

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  • Yellow (Easiest): Music Genres — JAZZ, POP, ROCK, RAP
  • Green: Severe Weather Events — HURRICANE, TORNADO, BLIZZARD, TYPHOON
  • Blue: Famous Movie Directors — SPIELBERG, SCORSESE, NOLAN, TARANTINO
  • Purple (Hardest): Words That Can Precede “Apple” — BIG, CANDY, CARAMEL, PINE

Solvers who identified the music genres and weather events early gained momentum, while the purple category — requiring lateral thinking about compound phrases — proved the trickiest for many. The progression from yellow to purple followed the game’s standard difficulty curve, rewarding systematic elimination and creative associations.

How Players Approached the Puzzle

Most players began by scanning for obvious clusters. The yellow category of music genres was frequently spotted first, providing an accessible entry point. The green weather events group required noticing natural disaster terminology, which many associated through shared experiences or news exposure.

The blue category of renowned film directors tested pop culture knowledge, with players often connecting through cinematic history. The purple category demanded the biggest cognitive leap, linking words that form common phrases with “apple.”

Community forums noted the puzzle’s satisfying balance — challenging enough to feel rewarding but not frustratingly obscure. Average solve times hovered around 4-6 attempts, with many sharing colored grids on social media to compare results with friends.

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Game Mechanics and Popularity

Connections presents 16 words that must be sorted into four groups of four based on shared themes. Mistakes reduce available attempts, adding gentle pressure. The color-coded difficulty system — yellow easiest, purple hardest — helps players track progress and encourages strategic thinking.

Since its debut, the game has joined Wordle as a daily habit for puzzle enthusiasts. Its social aspect, with shareable results grids, builds community and friendly competition. The New York Times regularly refreshes its games portfolio based on player feedback while preserving the core appeal of clever wordplay.

Educational and Cognitive Benefits

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Educators and cognitive scientists highlight Connections’ value in enhancing pattern recognition, vocabulary, and flexible thinking. The June 11 puzzle touched on music, meteorology, cinema and idiomatic language, offering multifaceted mental stimulation suitable for various age groups.

The game’s accessibility — requiring only a web browser or app — contributes to its broad demographic reach. Many families and workplaces incorporate it into morning routines, fostering discussion and shared accomplishment.

Companion Puzzles and NYT Ecosystem

On the same day, players could tackle Wordle No. 1818 (solution: TESTY) alongside Connections, creating a complete morning puzzle suite. Other offerings like Spelling Bee, Mini Crossword and Letter Boxed provide additional challenges for enthusiasts seeking variety.

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The Times continues refining its games, incorporating seasonal themes and player-suggested improvements without disrupting the fundamental experience. Companion articles offer hints, discussions and post-solve analysis, deepening engagement for dedicated solvers.

Strategies for Success

Veteran players recommend starting with categories that have clear thematic anchors, such as lists of proper nouns or obvious synonyms. Tracking used words and considering multiple possible groupings helps avoid mistakes. For puzzles like No. 1096, paying attention to contextual overlaps — for instance, words with dual meanings in entertainment versus everyday language — proves valuable.

Community forums, including Reddit’s r/NYTConnections, provide spaces for sharing experiences. Discussions around the June 11 edition highlighted appreciation for the film directors category and initial confusion between certain weather and music terms.

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Looking Ahead in the Puzzle Calendar

As Connections approaches further milestones in its numbering, the Times maintains a steady release of fresh content. Future puzzles promise continued variety, drawing from pop culture, science, history and language nuances. Players can access archives to revisit past solutions or practice skills.

The enduring popularity of these games reflects a human desire for structured intellectual play in digital formats. Puzzle 1096 exemplified how seemingly disparate words reveal unexpected connections upon closer inspection, delivering the satisfying “aha” moment that defines the game.

Whether solved in one go or after several attempts, the June 11 Connections reinforced the game’s core appeal. As solvers move on to the next challenge, the daily ritual continues to unite participants in a shared linguistic adventure.

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Analysts observe that such puzzles contribute to cognitive health, offering low-stakes opportunities for problem-solving that translate to real-world benefits. In an era of information overload, the focused nature of Connections provides a welcome mental reset.

For those who missed today’s solution, tomorrow brings a new grid and fresh opportunities to test wits against the New York Times’ clever constructors. The blend of accessibility and depth ensures Connections remains a highlight in daily digital routines for enthusiasts around the globe.

The June 11 puzzle served as another strong example of the game’s ability to entertain and educate simultaneously. As the Connections community grows, players can look forward to increasingly inventive themes that challenge assumptions and reward curiosity in equal measure.

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