Ruchit Mehta, Head of Research at SBI Mutual Fund, has outlined specific investment preferences for the current market environment. According to reports from CNBC TV18, Mehta recommends large caps as attractive on valuations, while suggesting midcaps require selectivity amid earnings risks. The fund house's research head emphasizes a cautious approach to mid-cap investments given the current market conditions.
Within the pharmaceutical sector, SBI MF prefers CDMO (Contract Development and Manufacturing Organisation) and hospital plays over traditional generics. As reported by CNBC TV18, Mehta cites stronger growth prospects for these specialized segments within the pharma industry. This strategic preference reflects the fund house's view on the evolving dynamics within the pharmaceutical sector.
Regarding the banking sector, PSU banks may outperform in the near term due to stronger loan growth prospects. According to the research from CNBC TV18, Mehta notes that asset quality risks could emerge over the next 2-3 quarters if global disruptions persist. However, recent market analysis suggests that PSU banks are still positive on monthly or weekly time frames, but the rally was so steep that more consolidation is likely before a fresh rally.
Market expert Ajit Nayak from HDFC Securities provides technical insights suggesting a "liquidity sweep" pattern that could signal upside potential. As reported by The Economic Times, Nayak notes that Nifty broke below the 24,790 level but did not sustain below it, indicating a potential reversal. The India VIX is revisiting the 17.25 support level, which could determine the next market direction. Key levels to watch include 23,800 as important support and potential targets of 24,400-24,500 if sustained above current levels.
