According to The Economic Times, nine out of ten investors are reportedly confused about the market's direction, creating what market experts view as a rare opportunity rather than a warning sign. Anshul Saigal, Founder of Saigal Capital, argues that the current wave of bearishness itself serves as a contrarian signal, with patient long-term buyers positioned to gain significantly from today's valuations. Speaking to ET Now, Saigal emphasized that "if you are a buyer for the next three to five years, this is a very interesting market — a market where a lot of money rests on the table for those who are patient."
As reported by The Economic Times, Indian markets are currently trading at an 11% discount to their long-term average, presenting what Saigal describes as a very interesting market opportunity. The Nifty currently trades at approximately 18.5 times 12-month forward earnings, representing an 11% discount to its 10-year long-term average of 21 times. Small and midcap stocks have fallen 30% to 50% from their all-time highs over the past 18 months, suggesting both time and price correction have already played out. This significant undervaluation relative to historical norms creates substantial opportunities for patient investors.
According to The Economic Times, Saigal argues that the earnings slowdown is seen as temporary, with reacceleration expected in the near future. After a strong 16% earnings CAGR for the Nifty between 2020 and 2025, growth decelerated sharply to around 5–6% in FY26. Saigal sees this as a cyclical trough, not a structural break, expecting earnings to reaccelerate in the second half of FY27 and into FY28, supported by a favourable base effect and a pickup in private sector capital expenditure. He points to India's long-term trajectory, citing mobile phone exports which rose from roughly ₹1,500 crore in 2015 to over ₹2 lakh crore in 2025, a 130-fold increase, while imports collapsed by 92% over the same period.
As reported by The Economic Times, Saigal expresses particular confidence in PSU banks as key beneficiaries of a private capex revival. He identifies housing finance and diversified NBFCs as attractively valued investment opportunities. Within IT, he suggests focusing on niche companies exposed to semiconductors and AI infrastructure rather than traditional software services, where uncertainty around AI disruption has not yet settled. He highlights AI data centre and energy transition themes spanning solar, wind, and oil and gas capex as near-term opportunities. Saigal notes that Indian financials are well-capitalised with manageable credit costs, unlike many global peers, supporting his positive outlook for the banking sector.
