In an exclusive interview with ET Now, he noted that business performance is improving, Q4 results are expected to outperform Q3, and foreign institutional investor (FII) inflows have started to pick up, indicating a positive trajectory for Indian capital markets.On sectoral opportunities, Bandyopadhyay expressed strong belief in the chemical and agrochemical sectors, especially specialty chemicals, which have underperformed in the past two years.
“One area where I have been very optimistic is in chemicals, agrochemicals and specialty chemicals. This was a completely bombed sector and over the last two years they have disappointed investors. But now the green shoots are clearly visible,” he said.
He cited the “China plus one” strategy, ongoing trade deals with the US and EU, and growing exports as major tailwinds. UPL, a leading agrochemical company, was identified as a strong buy following its corporate restructuring, with a focused growth path and attractive valuations. Aarti Industries, with its continued expansion plans, was also recommended as part of a long-term portfolio strategy.
The expert also pointed to opportunities in the capex and defense sectors. He highlighted companies like Larsen & Toubro (L&T) and Bharat Forge, which are expanding their defense businesses beyond their traditional businesses. Rising order volumes, strong international operating margins and sustained capital expenditures make these companies attractive from a long-term perspective. Bandyopadhyay expressed caution on the solar panel sector, especially Waaree and US-exposed players, noting that while current contracts may remain unaffected, future businesses face uncertainty due to recent duty structures. As such, he advised against purchasing this space until clarity emerges.
On energy-related public sector units (PSUs), Bandyopadhyay reaffirmed his positive stance.
“We believe there is some long-term upside in the Indian energy sector. What is happening is that this sector has not delivered good returns in the last year and a half and investors are a bit frustrated,” he said.
He praised NTPC for its strong operational efficiency, green energy integration and forward backward linkages. Energy financiers such as PFC and medium to long-term options such as IREDA also offer attractive opportunities given the coming increase in energy capacity and credit demand.
The retail and telecom sectors were not overlooked. Value retail companies operating in Tier III and IV locations, with strong footfall and growing profitability, offer attractive long-term growth prospects. In the telecom sector, Bharti Airtel remains fundamentally strong despite recent NBFC-related stock weakness, and Bandyopadhyay reiterated a buy rating, emphasizing robust core business and market share gains.
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