According to Devarsh Vakil, Head of Prime Research at HDFC Securities, Indian equity markets are presenting genuine buying opportunities despite current volatility. As reported by The Economic Times, Vakil emphasizes that the market is cheaper than it looks and expects Nifty aggregate earnings of around ₹1,250 per share with earnings growth of 12 to 13 percent on the horizon. He noted that April was already one of the best months for markets in several years and expects this momentum to return once the current weakness passes. The latest market data shows India VIX falling to 18.44, down 1.26%, which Moneycontrol reports as a positive signal reflecting stabilizing sentiment as bulls gain comfort with the market consolidating above key levels.
Vakil identifies five key sectors for tactical investment: power and renewables, banks and NBFCs, pharmaceuticals, IT, and cables/wires. According to the analysis reported by The Economic Times, he sees strong earnings momentum in banks and NBFCs with results meeting or beating street estimates, while pharmaceuticals offer multiple entry points as generic drug price erosion in the US has stabilized. For long-term investors, he highlights nimble midcap and smallcap IT companies that can implement AI solutions for enterprise clients, and cables and wires that are riding the power and infrastructure wave with strong earnings momentum. Ashwini Agarwal from Demeter Advisors also favors private banks and FMCG companies as offering the strongest opportunities, citing private banks trading near valuation levels last seen during the COVID-19 downturn with expectations of 18-20% annual returns over the medium term. He notes that FMCG companies are indirect beneficiaries of inflation as rising input costs typically push prices higher, while later moderation can help margins expand.
According to Ashwini Agarwal from Demeter Advisors, the technology sector is showing signs of improvement after a long period of underperformance. While currently having no exposure to IT services stocks, he said the outlook is improving due to currency tailwinds and AI-linked demand. As reported by CNBC TV18, he is turning incrementally constructive on IT services companies, noting that AI adoption could create consulting and migration opportunities for Indian IT firms over the next few years. Dewan described the recent move in IT stocks as largely tactical rather than conviction-driven, with weak earnings guidance from major IT companies continuing to cap enthusiasm. However, the latest sector analysis shows IT/Tech as a STRONG BUY with Nasdaq +1.54% and Taiwan +3.37%, while the rupee at 95+ adds to IT export realisations.
According to Neeraj Dewan, the auto ancillary space is witnessing selective value buying after remaining under pressure due to rising crude-linked input costs. As reported by ET Now, Dewan highlighted that tyre companies and several ancillary stocks have not reacted strongly despite posting healthy earnings, mainly because of concerns around elevated crude prices. However, he believes a meaningful correction in crude oil prices could trigger sharp buying and short-covering in these counters. He added that any easing in geopolitical tensions, particularly involving the US and Iran, could significantly improve sentiment for these stocks.
As reported by The Economic Times, Vakil urges investors with cash, conviction, and courage to act during the current market uncertainty. He emphasizes that those deploying capital during this period will benefit from the combination of lower valuations and improving earnings. According to CNBC TV18, Ashwini Agarwal from Demeter Advisors emphasizes that this is very much a bottom-up, individual opportunities market where many stocks corrected sharply after the March lows and are now seeing recovery as management commentary and earnings improve. The latest market data shows GIFT Nifty at 23,810.50 (+145.50 points) signaling a strong gap-up open near 23,800–23,820, with Nifty's May 20 close at 23,659 implying a gap-up of approximately 145–160 points. Dewan also noted that the broader market has started showing resilience again after a brief phase of profit booking earlier in May, with selective buying in midcaps and smallcaps resurfacing as investors respond positively to quarterly earnings. The declining VIX environment makes option buying cheaper and reduces panic-driven stop-loss hits, while FII selling of ₹1,597 crore is being absorbed by DII at ₹1,968 crore.
