Rahul Shah from MOFSL in an interview to ET Now noted that markets have largely been in a “seesaw” phase through the month, even as earnings remained robust. He said, “Overall markets have been in a seesaw… the result season ended with strong numbers and fourth straight quarters with double-digit profit growth. BFSI saw double-digit growth and should continue to do well, metals after a strong rally remain positive with steel expected to pick up, while consumption, autos and cement should also remain strong. In a nutshell, one should use this opportunity in largecap stocks and we are positive on the markets.” His view reflects confidence that underlying fundamentals remain intact despite near-term volatility.
Attention has also been on Reliance Industries as it steps up investments in AI, data centres and digital businesses alongside expectations around Jio’s future listing. On the stock, Shah said, “Telecom, retail and core businesses together position Reliance well. The stock has not done much in the last year and valuations are reasonable. They are doing the right things at the right time and we are positive on Reliance as a portfolio play.”
Addressing concerns around rising debt due to fresh capex, he added, “Reliance has successfully managed debt over the years and most new businesses have scaled well. We are not worried about the debt as cash flows from core businesses are strong — it is just a matter of time.”
On metals, which have seen some correction amid global uncertainty, Shah described the move as a pause rather than a trend reversal. He said, “The rally in metals over the last six to eight months looks like a pause due to quarterly volatility. Management commentary remains confident with prices firm. Steel, aluminium and zinc setups remain strong and the metal pack should do well over the next couple of quarters.”
Overall, while short-term swings may persist, the broader message from market watchers is that strong earnings visibility and sectoral momentum continue to support the case for selective investing, particularly in largecap names.
