India's top investors used the sharp market correction in the March quarter to accumulate smallcap and beaten-down stocks, signaling selective conviction even as broader sentiment remained weak. According to reports from The Economic Times, the Nifty fell over 10% during the period, with deeper cuts in the broader market, prompting high-profile names to deploy capital into niche and under-owned companies. The correction has created opportunities not only in traditional smallcap segments but also in emerging AI-related companies that remain undervalued despite growing sector momentum.
Radhakishan Damani made a fresh entry into TSF Investments, a stock that has been under pressure, declining about 12% so far this year and nearly 39% over the past year. As reported by The Economic Times, the move stands out given the stock's sharp correction and relatively low visibility, indicating a contrarian bet in the smallcap space. This represents a significant contrarian position in a stock that has experienced substantial decline over the past year.
Mukul Agrawal continued his focus on emerging companies, picking up a 1.62% stake in True Colors during the quarter. According to The Economic Times, the company operates in the digital textile printing solutions segment and has shown strong growth, with profit rising sharply and revenue expanding at a healthy pace. The stock remains below its IPO price despite recent gains, suggesting value buying at lower levels. Agrawal also increased exposure to infrastructure and paper plays such as Capacit'e Infraprojects, Hindustan Construction and West Coast Paper, reflecting a broader tilt towards cyclicals.
Ashish Kacholia raised stakes across multiple small and midcap names including TechEra Engineering, SG Finserve, Aeroflex Industries and Tanfac Industries, continuing his strategy of building positions in niche manufacturing and specialty segments. As reported by The Economic Times, this represents his continued approach of accumulating positions in smaller companies across various sectors, demonstrating his confidence in the recovery potential of these niche segments. The strategy has also expanded into AI-related opportunities, with recent investments in companies positioned to benefit from the AI buildout super cycle.
Madhusudan Kela made fresh bets on Indiabulls and Simplex Infra, both operating in capital-intensive sectors such as real estate, financial services and infrastructure. According to The Economic Times, these sectors had seen significant drawdowns during the correction, making them candidates for recovery-led plays. Vijay Kedia added Precision Camshafts to his portfolio, a company with strong presence in the global automotive supply chain, while Dolly Khanna picked up positions in Chennai Petroleum, Rain Industries and Sharda Cropchem, indicating interest in commodity-linked and agrochemical names. Recent investments have also included AI-focused companies that are expected to benefit from the ongoing AI infrastructure buildout.
Sunil Singhania initiated a position in Heritage Foods, a dairy player with strong distribution network and steady demand profile, marking a shift towards consumption-linked stability amid volatility. As reported by The Economic Times, the common thread across these moves is a clear shift towards selective accumulation in smaller companies and cyclical sectors that were hit hardest during the correction. While risks remain, especially in the smallcap space, these investments suggest that seasoned investors are positioning for a recovery once broader market conditions stabilise. The strategy now includes both traditional value opportunities and emerging AI-related companies that offer potential for significant growth as the AI infrastructure buildout accelerates.
