Car and consumer stocks: Rally and pause then
Cars and consumer-oriented sectors are among the biggest profit since the GST interest rates and expectations of a stronger demand. Aggarwal pointed out that many shares in these sectors have risen by 20-30% in the past three months.
“Such sharp rallies are often followed by a period of consolidation or even small corrections,” he explained. “The real test is now how GST-conducted price reductions actually translate into higher volumes and improved demand.”
Aggarwal said that until no concrete sales data arises, it is unlikely that the estimates of the profit will change considerably. However, as soon as the benefits of lower gst in question and reflect margins, the second stage of profit could begin. “In the medium term, cars and consumer shares will not be positive, although the volatility cannot be excluded in the short term,” he added.
Defense: a structural growth tongue
Aggarwal was Bullisher in the defense sector. “Defense is a very structural story,” he said, with the emphasis on the consistent urge of the government for self -reliance in defense production. In the past decade, policy initiatives have resulted in strong order books and the visibility of growth for companies in the sector.
Defense shares emerged sharply after May, but have been cooled since. Aggarwal sees this as natural consolidation. “If you look with a position of two to three years, the defense shares remain some of the strongest structural bets on the Indian markets,” he noticed.
Tega Industries: Acquisition raises questions
Aggarwal said it was too early to comment on the acquisition of Tega Industries and said it was too early to give a clear opinion. Although the company has performed well, investors must evaluate the profitability of the acquired company, the impact on balance and future cash flows. “The finer details of the acquisition will determine whether this value has been affected,” he said.
IT: A valuation -driven rally
Aggarwal also weighed in IT shares, which have seen mixed performance. Large-Cap IT shares, including Infosys, have been reflected in recent weeks. However, Aggarwal emphasized that this recovery was valued instead of Fundamentals.
“At the moment the growth rates and order flows do not show significant acceleration. The AI transition remains uncertain. But the ratings are on multi-year lows, generating cash is strong and the dividend yields are attractive. These factors drive the rebound,” he explained. The recent return of Infosys has also yielded a pillow for investor sentiment.
Aggarwal warned that investors should not expect an immediate fundamental improvement. “It will take time for IT companies to show better profit growth, but the sector has regained the attractiveness of current ratings,” he said.
General Market Preview
Aggarwal said the Indian market is in a Churn phase. Cars and consumer shares can consolidate before the next stage of growth. Defense remains a structural winner in the long term. Despite weak basic principles, it offers valuable possibilities due to attractive prices.
“We will see consolidation in the short term. In the medium term, there are sufficient structural drivers to keep the interests of investors strong,” concluded Aggarwal.
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