According to The Economic Times, Shibani Sircar Kurian of Kotak AMC emphasizes that while markets navigate volatility, reasonable valuations and historical trends provide investor comfort. The Nifty is currently trading at about 19 times on a one-year forward basis, which is slightly below its long-term averages. As reported by ETMarkets.com, Kurian notes that while valuations are reasonable, they are not in deep value territory. The strategy remains cautious but opportunistic, with investors advised to use market corrections to add to equities while navigating near-term volatility. Recent market data shows Nifty Midcap 150 trading at about 9.6% below its fair value, suggesting current levels are closer to fair value rather than overheated territory.
The banking sector has emerged as a clear outperformer this earnings season, demonstrating strong balance sheet growth and stable asset quality. According to The Economic Times, credit growth has started to pick up across industry as well as retail credit segments. Kurian highlighted that concerns around bad loans have not materialized, with credit costs remaining well under control. With interest rates stabilizing, net interest margins are expected to stabilize, potentially leading to a pickup in earnings for FY27. The sector's valuations remain favorable, with both private and PSU banks showing positive outlook.
The telecom sector is experiencing a more stable phase driven by consolidation and gradual tariff hikes. As reported by The Economic Times, ARPU expansion has taken place at a gradual pace, aiding profitability as users shift to higher-paying plans. Kurian noted that profitability is improving as users shift to higher-paying plans, with the outlook remaining constructive for leading players. Some of the top players are fairly well placed with improvement in profitability continuing.
Despite both PSU and private banks looking attractive, Kurian indicated a slight preference for private sector banks due to valuation comfort relative to historical averages. According to The Economic Times, the multiples are significantly below their long-term averages, providing a valuation differential advantage. The broader investment approach emphasizes staying selective, watching global cues closely, and using dips to gradually build exposure. With earnings expectations largely intact and valuations reasonable, corrections could offer opportunities for disciplined investors. Recent analysis suggests mid-cap funds have seen net inflows of about ₹6,000 crore in March 2026 and nearly ₹50,000 crore during 2025, representing about 14% of total equity mutual fund inflows.
