Auto toe and Consumer Shares: Rally, then pause
Auto and consumer-facing sectors have been the largest beneficiaries later. Agarwal pointed out that many stocks in these sectors have increased by 20-30% in the last three months.
“Such sharp rallies are often followed by consolidation or even minor improvement,” he explained. “Now the actual test is how the price reduction in the GST -led price really translates into a high volume and improved demand.”
Agarwal said that unless concrete sales data emerged, earnings estimates are unlikely to change. However, once the benefits of the lower GST are reflected in demand and margins, the other foot benefit may begin. “In the medium term, OS toe and customer stocks will look positive, though the near -term instability cannot be ruled out.”
Defense: The story of structural growth
On the defense sector, Agarwal was more booming. Releasing the constant pressure of the government for self -reliance in defense production, he said that defense is a very structural story. Over the past decade, strong order books and growth are visibility for companies in this sector as a result of the policy initiative.
Defense stocks have rallied quickly after May but have cooled down since. Agarwal sees this as a natural consolidation. “If you are looking for a two to three -year point of view, defense stocks have some strong structural bats in the Indian markets.”
Tega Industries: Edit raises questions
Commenting on the acquisition of Tega Industries, Agarwal said that giving a clear verdict was very early. When the company has performed well, investors must evaluate the profitability of the acquired business, its impact on balance sheets and future cash flow. “Better details of editing will determine whether it is worth the value.”
IT: Valuation-based rally
Agarwal also weighs IT stocks, with mixed performance. Large cap IT stocks, including Infosys, have been bounced back in recent weeks. However, Agarwal emphasized that this reCOVERY procurement is based on evaluation rather than the leadership of fundamentals.
“Currently, growth rate and order flow is not showing significant acceleration. AI transition remains uncertain. But the value is multi-year low, cash production is strong, and dividend yields are attractive. These factors are running rebounds,” he explained. Infosys’ recent buyback also offers a cushion for the spirit of investors.
Agarwal warned that investors should not expect immediate basic reforms. “IT companies will take time to show higher earnings, but in the current valuation this sector has gained attraction.”
Overall market view
Agarwal said that the Indian market is in the churning phase. Auto and consumer stocks may be integrated at the forefront of growth. Defense remains a long -term structural winner. It provides value opportunities due to attractive prices, despite poor fundamentals.
“Of the near -term, we will see consolidation. There are sufficient structural drivers to keep the interest of investors,” Agarwal concluded.
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