Indian shares were little changed in early trade on Tuesday as investors reacted to weak global cues, falling oil prices amid eased Middle East tensions, and renewed volatility in global technology stocks. The 30-share BSE Sensex dropped 81 points, or 0.1 percent, to 76,758 after having surged around 1 percent on Monday to snap a five-day losing streak. The broader NSE Nifty index was down 27 points, or 0.1 percent, at 23,973. This mixed performance comes as IT stocks have experienced a significant recovery this week, with the Nifty IT index jumping almost 6% in the past week. This recovery comes after IT stocks had fallen 20% year-to-date, leaving many investors questioning whether India missed the AI-driven tech rally.
According to reports from ET Now, IT stocks have experienced a significant recovery this week, with the Nifty IT index jumping almost 6% in the past week. This recovery comes after IT stocks had fallen 20% year-to-date, leaving many investors questioning whether India missed the AI-driven tech rally. The recent term being coined for this recovery is the Anti-AI trade, as some experts feel AI stocks are now overheated. Gaurav Bhandari, CEO of Monarch Networth Capital, views IT services as a contrarian call in the current market environment, stating that IT stocks, which were otherwise beaten down in 2026, have seen some respite this week. The recovery is being viewed as accumulation rather than a reason to panic by market experts.
As reported by ET Now, Bhandari has identified State Bank of India (SBI) and Larsen & Toubro (L&T) as his long-term investment bets. He describes SBI as the flagship PSU lender, combining strong fundamentals with a valuation still near book value. For L&T, he highlights its position as the ultimate capex giant with unmatched execution capabilities, noting that its rapidly scaling precision manufacturing positions it to become a formidable defence player in India's indigenization push. These companies are chosen based on strong free cash flows, low debt, high return on capital, and management with real skin in the game. The core discipline for long-term stock picks emphasizes prioritizing companies with strong free cash flows, low debt, high return on capital, and management with real skin in the game.
According to the interview with ET Now's Rakshita Madan, Bhandari emphasizes that India's low correlation with global markets is exactly why global managers are starting to treat India as a hedge against an expensive, heavily concentrated AI trade. He states 'We did not miss the bus. We are on a different one, and it runs on domestic earnings and consumption'. The valuation premium that had made India a consensus underweight has largely gone, with steady earnings and crude behaving itself creating conditions for durable inflows. A stable rupee would give FIIs a clear reason to look again at Indian markets. The strategy focuses on domestic earnings and consumption as the foundation for investment opportunities in the current market environment.
As reported by ET Now, Bhandari identifies three traps worth watching: sequence-of-returns risk, longevity risk of outliving your money, and family goals that have to be funded separately. His advice includes anchoring to a multiple, ring-fencing healthcare expenses, and letting quality equities do the work of beating inflation. This approach focuses on steady earnings and crude behaving itself as key factors that turn market conditions into durable inflows for foreign institutional investors. The emphasis is on quality equities and proper risk management strategies to navigate current market uncertainties.
