According to Business Standard, Neelesh Surana, Chief Investment Officer at Mirae Asset Mutual Fund, confirms that the bulk of the market correction appears to be behind us, with valuations remaining attractive. On a price-to-book value basis, valuations are 30-40% cheaper than they were two years ago, while the Nifty 50 now trades at 18.5x one-year forward earnings, roughly 20% below peak multiples. The Nifty at 18x valuation is finally near its long-term mean, with forward valuations looking increasingly attractive if earnings growth holds above 10%. As per Mirae Asset, corporate earnings could rebound at a 14% CAGR over the next two years, with valuations at 18.5x FY27 earnings and below 16.5x FY28 estimated earnings remaining reasonable.
According to The Economic Times, market expert Sandip Sabharwal of asksandipsabharwal.com identifies Axis Bank and ICICI Bank as the most compelling buy opportunities in the current market environment. He emphasizes that banks are cheap and well positioned, particularly from the private banking perspective. Sabharwal's banking picks align with GV Giri's expectation that the biggest upsides will come in financials, lending financials, banks, and NBFCs. The medium-term outlook remains constructive, supported by macroeconomic stability, monetary easing, fiscal support, improving banking profitability through net interest margin repricing, and a recovery in mass consumption. According to The Economic Times, loan growth is becoming more broad-based, while large private banks have gained market share in deposits.
As reported by The Economic Times, Sabharwal believes IT stocks are extremely oversold with potential for 12-15% upside from current levels. This assessment aligns with Giri's positive outlook on internet companies that have underperformed despite maintaining strong growth momentum. The IT sector faces two key challenges: uncertainty around discretionary technology spending and concerns about the impact of artificial intelligence on traditional IT services. While AI creates new growth opportunities rather than destroying the sector, increasing client demands for productivity gains are putting pressure on pricing and margins. Management commentary suggests demand conditions remain challenging, with no meaningful improvement visible yet.
According to The Economic Times, Sabharwal identifies Bharti Airtel as the only investable telecom stock, while cautioning against Vodafone due to structural challenges. This recommendation aligns with Giri's broader telecom outlook. Sabharwal's sharpest caution is reserved for Zepto, which filed its DRHP at a ~₹73,000 crore ($7 billion) valuation, questioning whether there is any credible pathway to profitability. He warns that Indian investors should be far more concerned about richly priced domestic loss-makers than about overseas mega-IPOs like SpaceX drawing liquidity away from Indian markets. This cautionary stance reflects broader concerns about domestic valuations in the current market environment.
According to The Economic Times, Shibani Sircar Kurian, Senior Executive Vice President and Head of Equity Research at Kotak Mahindra Asset Management Company, warns that if geopolitical tensions persist for an extended period, earnings expectations may need to be reassessed. She emphasizes that the current market environment requires a bottom-up and stock-specific approach rather than broad market bets. As per Business Standard, FPI outflows have been driven by high relative valuations, limited exposure to AI-linked stocks, and macro vulnerabilities tied to oil prices and currency pressures. However, most of these headwinds are now easing, with the Bloomberg Global Aggregate Index inclusion review in mid-2026 could drive $20-25 billion in passive bond inflows. The analyst notes that SIPs remain the most efficient way to navigate volatility, while new investors may consider hybrid funds for periods of uncertainty.
