Indian fund outperforming 98% of peers bets on defense stocks

A $3 billion fund at Kotak Mahindra Asset Management Co. is backing Indian defense stocks, wagering that geopolitical tensions will boost local arms production and support the government’s efforts to lower reliance on imports.The sector is already benefiting from stronger order pipelines and improving execution visibility, said Harsha Upadhyaya, chief investment officer at the $60 billion money manager. Industrials and financial stocks make up more than half of his Kotak Large and Midcap Fund, w...