India's benchmark equity indices could be headed for fresh highs as corporate earnings continue to surprise on the upside, according to Nimesh Chandan, Chief Investment Officer at Bajaj Asset Management.
Speaking to NDTV Profit, Chandan said the June quarter (Q1FY27) earnings season has so far turned out to be much stronger than initially anticipated, despite persistent global headwinds.
"Q1 earnings look much better than expected," he said, adding that the resilience in corporate performance has reinforced confidence in the broader market.
Chandan believes the intrinsic value of the Nifty 50 stands at around 27,000, suggesting that the benchmark index still has room to move higher. He added that he expects the market to touch a new high in the near term.
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Chandan said he remains bullish on the broader market, citing healthy valuations. He noted that valuation comfort beyond the frontline stocks continues to make the broader market attractive.
At the same time, he cautioned against attempting to predict short-term market movements, saying markets are not patient enough for investors to accurately predict their direction. Instead, investors should focus on identifying fundamentally strong businesses rather than trying to time the market.
On sectoral preferences, Chandan said the power and technology sectors have emerged as some of the fastest-growing segments of the market. He also expects continued growth in the capital markets ecosystem and the consumer discretionary space.
Commenting on the currency, Chandan said the depreciation in the rupee has created a "renaissance", indicating that certain sectors and businesses could benefit from the changing macroeconomic environment.
He also highlighted improving prospects for the pharmaceutical and healthcare sectors, saying both are beginning to show signs of buoyancy.
However, he advised investors to adopt a bottom-up approach while investing in pharmaceutical companies, focusing on individual businesses rather than taking broad sectoral bets.
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