Rajiv Agarwal, Managing Director of Doordarshi India Fund, remains optimistic about India's domestic sectors despite ongoing global uncertainties. According to reports from ET Now, Agarwal believes there are still opportunities in select domestic sectors, emphasizing that uncertainty is unlikely to disappear anytime soon, even if ongoing negotiations result in an agreement. He noted that even if there were to be a deal in the next few weeks, the uncertainty is likely to continue for a much longer period because there is a clear trust deficit between the two nations.
Agrawal's investment strategy focuses on sectors less likely to be impacted by global developments. As reported by ET Now, he stated that the key thing that we are doing is trying to look in areas which are not going to be as impacted from a business perspective or from an economic perspective. He highlighted that domestic sectors in India continue to remain relatively resilient, with the economy performing well despite higher inflation expectations. The fund manager emphasized that in general, the economy seems to be doing all right, and there would be higher inflation, but even then, the domestic play should continue.
According to Agarwal's analysis reported by ET Now, real estate remains attractive for investment opportunities. In the banking sector, he noted that the balance sheets of both individuals and businesses are in good shape, which should support continued credit growth if the economy performs reasonably well. The fund manager expressed confidence that both solar and wind should do well from that perspective, highlighting the renewable energy sector's potential.
Vaishali Parekh, Vice President – Technical Research at Prabhudas Lilladher, noted that IT stocks have begun to show signs of strength after a prolonged phase of weakness. As reported by ET Now, she highlighted that we started with mid-cap stocks like Persistent and Coforge, but in the last few sessions, Infosys and TCS are technically very well placed. Parekh believes that the risk-reward equation is currently favourable for investors looking at short-term opportunities, stating that if this momentum continues, we can get good returns from these stocks. The Nifty IT index has staged a notable recovery, gaining 7.24% over the past week and rising 5.87% in the last one month, indicating renewed buying interest in the sector.
Foreign Institutional Investor (FII) flows continue to face significant headwinds, as reported by ET Now. Agarwal noted that flows have been a challenge for India and have been leaving the country since the market peak in 2024. He attributed this to currency depreciation, which is not helping the situation, and the lack of a significant artificial intelligence investment theme that has affected India's ability to attract global capital. The fund manager suggested that reviewing taxation for foreign investors could help improve flows and make Indian equities more favorable for investors.
