According to reports from The Economic Times, Vikas Khemani of Carnelian Asset Management has revealed his top investment picks and strategy amid ongoing market turbulence. Khemani maintains his approach of staying firm on mid and large-cap exposure while making selective contra bets, building his playbook on conviction, quality, and patience - buying beaten-down market leaders and avoiding momentum-driven noise. Despite the volatile environment, Carnelian has not shifted its portfolio up the market cap curve, maintaining exposure across large and midcaps. Khemani's investment horizon of three to five years means short-term swings do not drive allocation decisions, with earnings drops creating bigger opportunities for long-term investors.
As reported by The Economic Times, Khemani's boldest call is IndiGo, where he increased his position during the recent market fall. He cited the airline's status as the lowest-cost market leader in a growing industry with no meaningful competition expected for the next five years and aircraft supplies lined up. Khemani views the current dip as a buying opportunity, stating that if stocks are getting cheaper, it becomes a very interesting play for investors willing to take short-term drawdowns. "If you are getting the stock cheaper for whatever reason and you are happy to take a short-term drawdown, that becomes a very interesting play," he said.
According to The Economic Times, Khemani is bullish but selective on the power theme, preferring conventional power enablers over renewable energy stocks which he believes suffer from high competitive intensity. Carnelian holds BHEL, which has delivered strong returns over the past two years, and Kalpataru Power, which is active in transmission businesses globally. He sees power demand remaining strong, driven by industrial growth, rising consumption, and the global data center and AI boom. On electronics manufacturing services stocks, Khemani said valuations and return profiles have not yet convinced him to invest meaningfully, though he continues to track the space closely.
As reported by The Economic Times, Khemani added more PSU bank positions during the market correction, finding attractive risk-reward setups. However, he remains positive on select private banks too, holding ICICI Bank and Federal Bank. His view emphasizes that company selection matters more than PSU versus private debate, pointing to the very different performance of HDFC Bank, ICICI Bank, and IndusInd Bank as proof that picking the right name matters far more than the category. He noted that within the same sector, individual stock selection determines returns, with the private versus public debate missing the fundamental point.
Latest market data shows mixed performance across Carnelian's portfolio holdings. BHEL shares are down 13.1% to ₹294.13, while IRCTC has gained 40.4% to ₹552.4. IndiGo maintains its position as the lowest-cost market leader despite recent market volatility. The portfolio's PSU banking exposure shows strong performance with Bank of Baroda up 16.9% to ₹278.16 and IDFC First Bank surging 24.4% to ₹67.29. Khemani's strategy of maintaining mid and large-cap exposure appears to be working as the market navigates current volatility, with his focus on quality companies over momentum-driven stocks proving effective.
