Amid heightened volatility in the Indian stock market triggered by tensions in West Asia and global economic uncertainty, investment expert Vikas Pershad has advised investors to remain cautious about certain sectors while focusing on long-term opportunities.
Speaking to NDTV Profit on Wednesday, Pershad said sectors such as large-cap FMCG companies, IT services firms, and private banks are currently facing pressure and may not offer the strongest near-term growth prospects compared to other segments of the market.
Pershad noted that capital is increasingly moving toward sectors with stronger earnings visibility and structural growth potential, including healthcare, defence, precision manufacturing, and auto components. According to him, several traditionally defensive sectors are struggling to maintain momentum in the current environment. He said large-cap FMCG companies continue to face challenges, while IT services firms are dealing with slower global demand and uncertainty in international markets. He also indicated caution toward private banking stocks, suggesting investors remain selective in the sector.
The portfolio manager observed that many stocks have delivered sharp gains over the past six weeks despite broader market uncertainty. However, he explained that part of the rally could be attributed to recovery from steep declines witnessed since September 2024, when several companies experienced heavy selling pressure. Pershad stated that some recent gains were likely technical rebounds from oversold levels rather than indications of a complete market recovery. He stressed the importance of careful stock selection instead of broad-based investing during volatile periods.
Pershad also encouraged investors to adopt a long-term investment approach in India, particularly outside the largest market capitalisation companies. He said investors willing to conduct detailed research and remain patient for several years could still generate healthy absolute returns from Indian equities. According to him, opportunities remain strong in emerging sectors linked to domestic manufacturing growth, healthcare expansion, and government-led industrial initiatives.
Indian equity markets have recently faced significant pressure due to concerns surrounding geopolitical tensions involving the United States and Iran, rising crude oil prices, and persistent foreign institutional investor outflows. Benchmark indices such as the BSE Sensex and NIFTY 50 have recorded sharp declines in recent trading sessions, while the Indian rupee has weakened against the US dollar. Mid-cap stocks, IT companies, and consumption-driven businesses have been among the worst affected sectors during the ongoing correction.
Despite the short-term uncertainty, market analysts continue to view India as an attractive long-term investment destination due to strong domestic consumption, infrastructure spending, and manufacturing growth. Pershad's comments reflect a growing view among global investors that while market volatility may persist in the near term, selective investing in sectors with strong structural demand could continue to offer meaningful opportunities for patient investors over the coming years.
Report by The Indian Witness
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