**Dipan Mehta, Director of Elixir Equities, remains cautious about the current market rally despite recent gains. According to reports from CNBC TV18, Mehta believes volatility could persist due to global uncertainties, leading him to adopt a wait-and-watch approach for the near term. The market analyst suggests that earnings season and management commentary will likely guide the next significant market move, as reported by CNBC TV18. In a recent conversation with ET Now, Mehta emphasized his philosophy of "I have seen this play out many times in my life. It is best not to chase momentum plays on the upside or the downside," stating that "Just stay put — that advice has worked well over the last 32 years."
Mehta is closely tracking the energy space as he sees potential opportunities emerging across multiple segments. As reported by CNBC TV18, the energy sector is attracting his attention due to policy support that could create opportunities across oil, gas and renewable energy segments. This strategic focus on the energy sector reflects his belief in the sector's potential for growth and investment opportunities. In his latest analysis, Mehta highlighted energy security as a powerful, multi-component theme with several distinct sub-sectors - describing this as a theme where the government is expected to push hard on domestic energy independence, similar to how India built self-reliance in defence manufacturing and semiconductors.
On banking, Mehta struck a cautious tone, flagging that CASA ratios across the industry have hit multi-quarter lows, making it increasingly difficult for banks to raise low-cost deposits. This, he believes, will compress net interest margins — hurting private sector banks more than their PSU counterparts. His advice is to be underweight on banks broadly, with a tilt toward PSU banks over private ones. Within financials, he favours multi-product NBFCs, specifically calling out Bajaj Finance, Cholamandalam Finance, L&T Finance, and Poonawalla Fincorp as stronger bets. His reasoning is straightforward - diversified NBFCs can shift focus between segments depending on risk cycles, unlike single-product lenders such as microfinance or pure gold loan companies, which have shown sharp value erosion when their niche turns adverse.
The cautious stance reflects Mehta's approach to waiting for clearer market signals before making significant investment decisions. According to CNBC TV18, this wait-and-watch approach is driven by the current global uncertainties affecting market conditions. In his latest guidance, Mehta advises investors to resist the urge to make sweeping portfolio changes and instead let the dust settle before acting. For long-term investors already holding positions, he recommends against drastic moves like liquidating entire portfolios or moving 30–40% of holdings into cash. Instead, he suggests using this period for minor, quality-improving reshuffles - shifting toward growth stocks and sectors where one is currently underweight.
Mehta highlighted two emerging investment themes he believes could produce multibagger returns over a three-to-five year horizon. The first is currency-driven export opportunity, with Mehta believing the rupee settling around 94 creates a weaker currency environment that is here to stay. He recommends identifying exporters who stand to gain, with a potential free trade agreement with the United States further amplifying winners in this space. The second theme is energy security, where Mehta expects the government to push hard on domestic energy independence, similar to how India built self-reliance in defence manufacturing and semiconductors. He describes this as a powerful, multi-component theme with several distinct sub-sectors - one that could reward early investors handsomely.
