Synopsis
Indian markets face geopolitical and inflationary headwinds, with prolonged economic adjustment expected through FY28. Domestic investors are finding opportunities in corrected valuations, focusing on resilient stocks and sectors like commodities, defense and healthcare. Selectivity is essential, especially in the financial sector, as the market goes through short-term turbulence.
Agencies The market can be turbulent in the short term, but selective opportunities exist for disciplined investors with a longer-term horizon.
Indian markets navigate in a delicate environment while geopolitical tensions and global inflationary pressures create uncertainty for investors. Manish Sonthalia Since Emkay Investment Managers shared their views on the current landscape and potential opportunities.
Regarding the market environment, Sonthalia said: “The conflict will first widen and then move into a longer phase of economic adjustment and selective repair rather than a general recovery. This is no longer just a geopolitical event – it has an impact oil priceLNG and supply chains, creating an inflationary shock. Oil-dependent India will feel the impact, and recovery may take time, probably until FY28.”
On buying opportunities, he added: “For foreign investors, dollar returns are less attractive due to rupee depreciation. domestic investorsvaluations have corrected to near COVID-era levels. Some sectors and companies now look attractive from a three to four year perspective. Domestic savings replace foreign flows, so we must focus on resilient actions and evaluations.
Asked about sector preferences, Sonthalia noted, “Sectors benefiting from inflation, commodities, consumer pricing power, defence, renewable energy and hospitals look promising. Financial services require selectivity: private banks are strong in the long term, while PSU banks offer favorable valuations. Overall, choose carefully, focusing on resilient sectors.”
The market can be turbulent in the short term, but selective opportunities exist for disciplined investors with a longer-term horizon.
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(What’s moving Sensex And Clever Track latest market news, stock market advice, Budget 2025, Equity market on the 2025 budget And expert adviceon AND Markets. Additionally, ETMarkets.com is now on Telegram. For the fastest news alerts on financial markets, investment strategies and stock market alerts, subscribe to our Telegram feeds .)
Subscribe to AND Bonus and read it Electronic document on economic times Online.and Sensex today.
Most trending stocks: SBI share price, Axis Bank share price, HDFC Bank share price, Infosys share price, Wipro stock price, NTPC stock price
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