Amid the ongoing volatility in the Indian stock market due the West Asia tensions, Vikas Pershad, portfolio manager-Asian equities at M&G Investments, has shared his opinion on sectors that investors could avoid at present.
Speaking to NDTV Profit on Wednesday, Pershad expressed caution over large-cap FMCG, IT services and private banks, saying capital is being allocated towards sectors with stronger growth visibility, such as healthcare, defence, precision manufacturing and auto components.
"It's hard to say in aggregate. I would say the large-cap FMCG names are still struggling. IT services names in aggregate are still struggling and in private banks, we're still holding fire for the most part," he said.
Pershad mentioned that shares of several companies have rallied sharply over the past month and a half, wherein performance of some stocks have been a surprise. Notably, some of these companies had fallen heavily since September 2024, making the recent gains partly a rebound from oversold levels.
ALSO READ: Ridham Desai Says Indian Equities Are Set For A Strong Year — With One Dark Horse Sector
"Over the past month and a half you would be surprised at some of the names that have rallied. Some of it might have been because they had been so beaten up from the September 2024 levels and there might be some bouncing back," he said.
Highlighting attractive long-term opportunities, he said, "I think if you stay away from the largest caps and you do your homework and you wait for a few years, the absolute returns from here should be pretty healthy in India."
The Indian stock market is experiencing significant volatility, primarily led by concerns of the US-Iran conflict, resulting in significant declines in Sensex and Nifty. Key sectors such as IT, broader midcap stocks, and consumption-related stocks are facing severe pressure, with the Indian rupee tumbling to record lows. Rising Brent crude prices, intense foreign fund outflows have also been key concerns for the stock market.
ALSO READ: Nifty Down 1.5%, Sensex Slumps 1,000 Points — Three Reasons Why Markets Are Crashing Today
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
