Indian equities continue to display resilience despite mixed global cues, with domestic liquidity flows helping offset foreign investor selling, according to Gautam Shah, Founder of Goldilocks Global Research.
Speaking to NDTV Profit, Shah said the market's recent reaction appears disconnected from global developments, highlighting the strength of domestic participation.
"Domestic inflows are winning over FII selloff," Shah said, adding that the market remains in good shape from a technical perspective and that the ongoing earnings season has largely delivered positive surprises so far.
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Shah believes investors looking for alpha may need to look beyond the banking sector. "Banking is not the space to generate alpha," he said, while pointing to stronger opportunities in the broader market universe.
According to him, the real action is unfolding in mid-cap, small-cap and micro-cap stocks, where select businesses continue to benefit from favourable earnings momentum and improving demand conditions.
He also noted early signs of a consumption recovery in the economy, a trend that could support a wider set of sectors over the coming quarters. Within the financial space, Shah remains constructive on housing finance companies, citing strong underlying fundamentals and a healthy growth outlook.
Additionally, robust domestic mutual fund inflows and retail participation have continued to provide support to equities, helping the broader market outperform several global peers.
Founded by market veteran Gautam Shah, Goldilocks Global Research is a Dubai-based investment research and advisory firm focused on global financial markets. The firm provides research across equities, sectors and asset classes, combining technical, fundamental and quantitative analysis to identify long-term market trends and investment opportunities.
Shah has consistently maintained a constructive stance on broader markets in recent months, arguing that leadership is likely to remain concentrated in select mid- and small-cap pockets rather than in benchmark-heavy sectors.
With Q1FY27 earnings tracking ahead of expectations and domestic liquidity remaining strong, Shah believes the market continues to offer attractive opportunities despite periodic bouts of volatility.
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