According to The Economic Times, Kashyap Javeri, Head of Research at Emkay Investment Managers, advocates seizing current market opportunities despite global volatility. As reported by ETMarkets.com, Javeri stated that volatilities have been part and parcel of the market for many years, and when markets provide entry opportunities into fundamentally sound companies, that's the time to act. He emphasized that if you were sitting on the fence thinking the market was overvalued, probably this is the right time as valuations are currently in favor of investors.
As reported by The Economic Times, Javeri's approach is firmly bottom-up, focusing on reverse-engineering returns rather than making sweeping macro calls. Three sectors stand out to him currently: private sector banks, capital goods, and auto and auto-ancillary space. According to the interview with ET Now, private sector banks are trading below broader market valuations despite headline worries around asset quality and leadership changes, which he believes is difficult to justify on fundamentals. The auto sector and capital goods are also attractive on a medium-term view with attractive valuations.
According to The Economic Times, Javeri draws a direct parallel to the Russia-Ukraine conflict for his analysis of the West Asia situation. He noted that oil prices spiked sharply after that war broke out in early 2022 and kept climbing until around June of that year, with inflation weighing on corporate earnings well into December 2022. As reported by ETMarkets.com, Javeri stated that any disruption from the current conflict is likely to last 45 to 60 days, after which it will be a level playing field for everybody. Energy-intensive sectors such as ceramics are feeling near-term pressure from fuel availability issues, but he cautions against letting short-cycle pain drive long-cycle decisions.
As reported by The Economic Times, Emkay's exposure to the IT sector is selective and deliberately limited. Javeri expects overall earnings growth for the sector to lag Nifty growth over the next two to three years, making broad-based IT bets unattractive. Instead, the firm has positioned in companies tied to digitalisation and automation, representing a narrower, more defensible slice of the technology landscape. This selective approach reflects the firm's focus on fundamentally sound businesses rather than broad sector exposure.
According to The Economic Times, Javeri's overarching message for investors sitting on cash is to use the current discomfort as an opportunity. He emphasized that the discomfort you feel right now is the same discomfort that historically precedes the best returns. His approach involves identifying a stock's fair value, deciding what returns are needed over three years, and determining whether the current price gets you there. This disciplined methodology separates good decisions from reactive ones during periods of market fear and uncertainty.
