2 days ago
Bonanza CIO Favors Selective Equity Bets Amid Market Headwinds
Achin Goel says some stocks are becoming attractive after a weak market period, but investors should choose carefully.
He prefers companies that can show steady earnings, strong finances and good execution.
He sees opportunities in areas such as engineering, defence, electronics and data centres.
He also likes selected pharmaceutical and banking companies.
Higher oil prices, global interest rates, foreign selling and geopolitical tensions are making markets more difficult.
Because of these risks, he does not recommend selling equities across the board.
He suggests keeping large companies as the main part of a portfolio.
Investors can still consider mid- and small-cap companies, but they should check valuations, liquidity and business quality carefully.
He says switching funds should be based on a weakened investment case rather than recent performance.
Achin Goel sees selective value emerging, with earnings visibility, balance-sheet strength and execution driving stock performance.
He favors pharma, precision engineering, select defence, PSU banks and well-capitalised mid-sized private banks.
Long-term opportunities include aerospace, power transmission, electrical equipment, electronics manufacturing and data-centre infrastructure.
Goel says investors should remain invested but manage risk amid foreign selling, high crude prices, rupee weakness, global yields and geopolitical tensions.
He recommends large caps as the portfolio core, while urging bottom-up selection and strict valuation, sizing and liquidity discipline in mid- and small-cap stocks.
- Who
- Achin Goel, CIO and Fund Manager at Bonanza Portfolio.
- What
- Goel outlined a selective equity investment strategy, favored sectors and portfolio-rebalancing approach.
- Where
- The Indian equity market, amid global financial and geopolitical pressures.
- When
- At the current market juncture; he also referred to India’s Q1 FY27 economic growth.
- Why
- Markets face foreign institutional selling, elevated crude prices, rupee weakness, higher global bond yields, renewed US monetary tightening and West Asian tensions.
Key facts
- Expert
- Achin Goel, CFA, CIO and Fund Manager at Bonanza Portfolio
- Preferred sectors
- Pharma, precision engineering, select defence, PSU banks and well-capitalised mid-sized private banks
- Structural themes
- Aerospace manufacturing, power transmission, electrical equipment, electronics manufacturing and data-centre infrastructure
- Market valuation
- The Nifty was trading at 19.5 times trailing earnings
- Portfolio preference
- Large caps should form the portfolio core because of liquidity, balance-sheet strength and relative valuation comfort
- Key risks
- Foreign institutional selling, crude oil prices, rupee weakness, global bond yields, renewed US monetary tightening and geopolitics
- Rebalancing principle
- Switch funds only when the original investment thesis has weakened, not simply to chase recent performance
Sources
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