“We are at the end of the earnings season. Results are largely in line with expectations and management commentary is turning positive. Changes in GST and a good monsoon should aid demand recovery, and earnings are expected to improve well into FY27,” Upadhyaya said.
Consumption and investments on the radar
ET Now asked about the government’s push for consumption and capital expenditure.
Upadhyaya responded, “Capital investment is up 45% year-on-year in the first five months, but for the full year, growth could be in low double digits. For consumption, the GST rejig has reduced prices in many categories by 8-10%, increasing affordability. Coupled with a strong monsoon, this should gradually support the recovery in consumption.”
Selectivity in industrial investments
On industrial companies, he noted: “The industrial space requires selectivity. Deliveries are not linear and valuations are already reasonable or somewhat high. We are now taking a bottom-up approach, focusing on companies with solid growth and valuations, rather than the entire segment.”
In short
With profits stabilizing, investments showing steady growth and consumption gradually improving, market fundamentals in India appear solid. Experts like Upadhyaya recommend a selective, long-term approach for sectors like industrials, focusing on valuation discipline and targeted investments.
#Harsha #Upadhyaya #advises #bottomup #stock #selection #stable #market #fundamentals