Quant MF Sees Indian Markets Range-Bound — CIO Sandeep Tandon Explains Why

Indian markets are likely to remain range-bound going forward, as most market participants continue to stay on the sidelines, said Sandeep Tandon, founder and chief investment officer of Quant MF.

Sentiment is ultimately very important for a rally. Currently, overall excitement is missing, he said.

As of now nothing in India looks either very dismal or bright. The Indian market has under-performed globally on a relative basis. In the last one and half month, investors concerned about tariff-related challenges have refrained from participating. Overall, participation remains low, and short positions by foreign institutional investors are on the rise, Tandon said in an interview to NDTV Profit.

"We are talking about a very range-bound market. In a range-bound market, it becomes a very stock-specific thing," he said.

Quant MF is more focused on domestically oriented companies — large infrastructure and hospitality names. The brokerage remains optimistic about the pharmaceutical sector despite tariff-related scares because it believes the industry is likely to be exempted, he said.

The earnings cycle has either bottomed out or is likely to do so by December end. Investors may begin to discount it, as the cycle is still at least a quarter away from bottoming out, he said, adding it was a time to be highly selective.

The pressure is clearly visible on NSE Nifty 50 companies. FII-centric stocks are exerting pressure well as foreign investors are exiting the markets, he said.