Market expert Neeraj Dewan believes there are early signs of stability in the markets following recent geopolitical tensions. According to reports from The Economic Times, Dewan stated that since last week, markets have recovered and many stocks have moved up from their lows. He noted that it looks like a short-term bottom may be in place, though investors must watch whether the ceasefire sustains. For investors, this represents an opportunity in largecap blue chips, though the uncertainty hasn't fully faded.
The banking sector continues to be a key pillar for portfolios, with Dewan maintaining a positive stance on both PSU and private banks. As reported by The Economic Times, Dewan remains positive on PSU banks given their balance sheets and credit growth outlook. At the same time, large private banks like HDFC Bank and ICICI Bank are attractive on valuations. Investors should have exposure to both, but slightly reduce overall financial allocation.
The recent correction could mark a turning point for foreign institutional investor flows back into India. According to Dewan's assessment reported by The Economic Times, the meaningful correction of around 15-17% is significant and could encourage FIIs to gradually return, which has been a key concern over the past year. He also emphasized the importance of sector rotation during such phases, noting that there are always opportunities in sectors that have corrected recently.
The metals sector has delivered strong returns and Dewan believes the structural story remains intact. As reported by The Economic Times, Dewan remains positive on metals, stating that post-resolution, demand will rise across ferrous and non-ferrous segments, supported by global rebuilding and manufacturing trends. This sector continues to present opportunities despite the recent market volatility.
While certain developments in the auto space have been encouraging, Dewan advises a cautious and selective approach to the sector. According to The Economic Times, while Bosch news is positive, valuations have run up, so better entry levels are needed. Dewan prefers commercial vehicles but remains cautious on passenger vehicles and two-wheelers due to demand normalisation and macro factors affecting the sector.
