Market experts are increasingly viewing current volatility as a strategic opportunity rather than a warning sign. Kashyap Javeri, Fund Manager and Head of Research at Emkay Investment Managers, advocates for investing during market corrections, noting that corrections like the recent March-April turbulence aren't warnings but invitations. As per Emkay Investment Managers, clients who used the March dip to enter fresh positions or top up existing ones have already seen significant returns in April across their portfolios. Javeri emphasizes that volatility is always a friend of an investor if you use it rightly, with the current opportunity window open now rather than waiting for clarity when prices have already moved.
Market veteran Ambareesh Baliga believes pharmaceutical stocks remain one of the safer sectors for investors seeking stability amid challenging market conditions. Speaking to ET Now, Baliga stated that the rupee is likely to remain range-bound unless crude oil prices cool significantly and foreign institutional investors return meaningfully to Indian equities. He specifically advises focusing on top-tier pharma companies rather than taking exposure to smaller midcap and smallcap names, especially in uncertain market conditions. Kashyap Javeri also endorses the pharma sector, specifically targeting contract manufacturing and CDMO (Contract Development and Manufacturing Organisation) names, where he's "quite happy to put money" in the large, sector-leading companies.
Javeri's investment approach focuses on four key sectors during current market conditions. Auto ancillaries top the list, with Emkay adding exposure in this space. Capital goods remain a conviction bet, while private banks have moved into focus as valuations have come down meaningfully and the feared deterioration in asset quality hasn't materialized. The fourth sector is power equipment suppliers rather than utilities directly, offering cleaner balance sheets, stronger cash flows, and avoiding raw material risks. Jewellery companies continue to face challenges following recent earnings announcements and higher import duties on gold, with Baliga suggesting investors stay away from most jewellery stocks for the next two to three quarters.
Despite mixed quarterly numbers, Baliga maintained a constructive stance on Tata Motors, while the company's domestic passenger vehicle business remained relatively stable. However, Javeri's approach differs significantly, with Emkay remaining cautious on infrastructure despite the sector's traditional appeal. Baliga shared a bullish long-term outlook on Solar Industries India, particularly due to its leadership position in defence products and consistent margin performance. He highlighted that the company has been a leader in defence products with consistently high margins in the region of 26-28%, expecting growth to continue with potentially 15% CAGR over the next four to five years.
The current market environment reflects lessons from recent history, with Javeri citing the February 2022 Russia-Ukraine crisis when crude peaked in June 2022 but recovered within two months. Sixty to sixty-five percent of Nifty 500 and Nifty Midcap 150 market cap has already reported Q4 numbers, with none of it showing West Asia damage yet. This historical context supports the view that current volatility presents an opportunity window rather than a period of permanent damage. The experts emphasize that investors who wait for certainty before deploying capital often miss recovery opportunities, while those who lean in during market noise are already positioned for returns as volatility provides strategic entry points.
