“The market is consolidating, but with better-than-expected earnings and strong fundamentals in key sectors, we are poised for a broader rally,” Dewan said.
Telecom leads with Bharti and Jio
Dewan remains optimistic about telecom and calls it one of the strongest structural stories in the market.
“Bharti Airtel’s numbers are brilliant: subscriber growth, rising ARPUs and efficiency gains all point to continued strength,” he said.
He also expects Jio’s listing to be a major trigger for parent Reliance Industries, while remaining cautious on Vodafone Idea, citing continued subscriber losses.
Commercial comeback and festive demand increase
The value retail and fashion segments are witnessing a comeback after almost two years of underperformance. “The October-December quarter will be strong for most retailers, driven by festive demand, GST benefits and improved consumer sentiment,” Dewan said.
He noted that while valuations of some stocks are high, the sector’s fundamentals remain solid and the upward trend could continue into early 2026.
Cement correction is an entry-level option
Commenting on the recent weakness in cement stocks, Dewan said the fall in prices presents an opportunity.
“With infrastructure and investment activities gaining momentum, cement demand should rise sharply in the second half. Investors should use this correction to accumulate quality names,” he added.
PSU banks need to stay on their toes
With the State Bank of India (SBI) about to announce results, Dewan said all eyes are on the management’s prospects.
“The PSU banking rally has been strong. If SBI expects robust credit growth and improved margins, the sector will remain in focus,” he said.
However, he warned that any profit losses could lead to short-term volatility given the strong rally in these names.
Broader market ready for catch-up rally
While large caps have led the way so far, Dewan believes mid-caps and small caps could outperform as earnings visibility improves.
“Several mid-cap stocks are down 50 to 60% from their highs, and as the numbers improve, the broader market should join in,” he said.
Trading Opportunities in InterGlobe Aviation
On the aviation sector, Dewan remains constructive on InterGlobe Aviation (IndiGo).
“Crude oil prices are low and passenger demand has been high. However, regular selling by promoters is creating volatility, making it a better trading opportunity,” he said.
Cautious optimism about consumer stocks
While Titan and Bharti Airtel posted robust profits, Dewan said Tata Consumer’s margins somewhat disappointed.
“Consumer companies will benefit from festive demand, but investors should keep a close eye on margins and input costs,” he advised.
Outlook: Wider participation and selective betting
In summary, Dewan said markets are likely to remain stock-specific in the near term.
“We are seeing rotation across sectors. The focus should be on select names in telecom, PSU banks, green energy and value retail – sectors supported by strong earnings visibility,” he concluded.
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