Skip IT Rally, Focus on Power and Steel, Says Market Expert

According to the market commentary, Neeraj Dewan has advised selective investing amid current market volatility, suggesting investors should avoid broad participation in the IT sector rally. The expert cited weak guidance from information technology companies as a reason for caution in that space. Instead, Dewan recommends focusing capital on power, energy infrastructure, steel, aviation, commercial vehicles, and select segments of FMCG and auto ancillaries. The analyst also identified specific opportunities in renewable energy and battery storage sectors, indicating confidence in the clean energy transition narrative.

Dewan's positioning reflects a broader rotation strategy favoring cyclical and infrastructure-heavy sectors. His emphasis on power and energy infrastructure aligns with structural trends in India's push toward electrification and renewable capacity expansion. The mention of aviation stocks gaining from oil price stabilization suggests the analyst expects moderating energy costs to improve airline margins and operational efficiency. This selective approach seeks to balance growth with valuation concerns, particularly in technology where earnings revisions have pressured sentiment. For market participants, the advice underscores the importance of sector rotation beyond momentum-driven trades, with particular emphasis on beneficiaries of energy transition, infrastructure development, and operational leverage to commodity price normalization.

Source: Markets-Economic Times