Indian equities are showing signs of building a base despite negative sentiment and foreign investor selling, according to Marathon Trends' Atul Suri. Speaking to ET Now, Suri noted that while the narrative around India remains subdued and investor sentiment continues to be cautious, market behaviour itself is sending a more constructive signal. The benchmark index rebounded to 24,500 after falling to around 22,000 in March, before settling near 24,000, suggesting the market is attempting to build a base rather than entering a deeper correction. As reported by ET Now, Suri emphasized that "the market is not making new lows" despite persistent negative sentiment and global headwinds, indicating a bottoming-out process is already visible.
Suri identified 24,500 on the Nifty as a crucial level where a breakout would signal a move towards new lifetime highs. As reported by ET Now, he believes a breakout above that mark could pave the way for a move towards 26,500 and potentially fresh record highs. The falling crude oil prices, which had been a major concern for Indian markets, are now easing rapidly, with expectations that crude will settle in the $65-$70 range - levels that prevailed when Indian equities were nearing record highs. Suri noted that "my sense is that we would see crude around USD 65 to USD 70" and explained that "when crude was at those levels, we had almost nudged new lifetime highs."
Banking stocks are emerging as the next leg of market strength, with Suri highlighting the strong performance of the Bank Nifty, which is already close to breaking past its previous highs. According to ET Now, he observed that "the sector that I would look at is the most important sector, that is banks" given their heavy weightage in benchmark indices. He emphasized that "you can clearly see leadership in banks... it really pulls the biggest punch" and noted that while large sectors like IT have weakened, they are no longer falling sharply. "They are forming a base... incremental fall is not there," he said, suggesting broader stabilization across sectors.
While benchmark indices have struggled to generate excitement, Suri believes several niche themes are quietly creating wealth beneath the surface. As reported by ET Now, "Companies that are suppliers to data centres, you will notice that a lot of those stocks are moving higher." These opportunities are largely concentrated in the midcap segment, with sectors such as wires and cables, cooling systems and electronic manufacturing benefiting from the trend. Suri described a broader opportunity ecosystem around infrastructure supporting data centres, noting that "there's no such thing as data center suppliers, but you will find that wires and cables... electronic manufacturers... these are themes." He emphasized that "if you look at stocks making new highs... there is a certain thematic play" linked to the global AI and data center boom.
On commodities, Suri remains bullish on industrial metals such as copper, zinc and aluminium, while expressing caution about precious metals like gold and silver. According to ET Now, he struck a cautious note on precious metals, stating "I personally don't think that silver and gold can make massive up moves... they will be selling at higher levels." Instead, he identified "the industrial metals. I feel very bullish on these metals" as key opportunities. He linked their prospects to global electrification and energy transition trends, noting that "there is a very big shift happening in the whole power energy space." Suri expects demand from infrastructure and renewable investments to drive sustained upside in industrial metals.
