Market Outlook: The market mood deteriorated due to US tariff tension. Further outlook of the market and CIO of Bajaj Finserv AMC Nimesh Chandan Said that there is a positive outlook on the market. Market is expected to perform well in FY26. GDP growth is expected to be better. The growth rate in FY26 is expected to be faster than FY25. Tax benefits will increase consumption. Rate cuts will increase the compact and spending of common people. Returns in equity, bonds and gold are becoming good, the valuations of many sectors became cheap after correction.
Giving outlook on the smallcap, he said that there is a positive view on the smallcap. It is expected to earn great earnings in the coming 2 years. 20% annual growth in arrows is expected. Mid and largecap are expected to grow more. There is correction in many stocks. Valuance in smallcap is slightly economical. Some sectors are giving more correction and better opportunities. Correction came to the Chemical, Smalbank, NBFCS sector. Some consumer companies also got correction. Many sectors have good earnings, valuations are also less.
Talking on the 3-in-1 strategy of the fund, he said that this fund is a combination of quality, growth and value. Quality – Good management, strong balance sheet and growth – companies plan to move forward. And the third value- There is a focus on making a balance of quality+growth+value in good company at a low price.
In which sectors have investment? Investments have been invested in sector connected to interest rates. Sectors will benefit from low interest rate. Small NBFCS is exposure in small banks space. Invested in the real estate sector. Rate cut, tax benefits will reduce EMI, spending will increase. The consumer is a bullish on the designing sector. Invested in automobile, lifestyle space. Consumer has exposure in durable space. We like chemical and manufacturing sector.
Talking on the chemical and manufacturing sector, he said that growth was slightly slow for 2–3 years. Now they are in sector recovery phase. There is a possibility of doing better further. Valuction is economical.
Which sectors underweight? Responding to this, he said that The sectors in which the earning visibility is low. There is less exposure in the sector with expensive valuations. The defense sector is currently distanced. The valuation of the defense sector is all time high.
Giving outlook on the financial sector, he said that NBFCs are a bullish view on the small banks sector. There was a focus on micro finance companies. Sme sector or personal loan is space. Risk management focused on strengthening companies. MFI is a positive outlook on space. The growth in MFI was slow last year, now in recovery phase. Insurance is a positive attitude on capital companies. Investments in financials that have good repair.
He further said that there was a positive outlook on Agro chemical. The specialty chemical is long -term potential. In chemical space, volatility is possible in short term.
(Disclaimer: The ideas given on Moneycontrol.com have their own personal views. The website or management is not responsible for this. Money control advice to users to seek the advice of the Setted Experts before making any investment decisions.