Sanghavi noted that the Indian stock market outlook in 2025 reflects a phase of time correction rather than a steep fall. With the Nifty hovering near year-ago levels, valuations have adjusted without a major drop in prices. This environment, he explained, makes value investing more challenging unless supported by strong earnings or a clear catalyst. “Value is emerging partly from time correction… we need a little bit more earning support,” he said.
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While value stocks may take time to perform, Sanghavi highlighted the importance of balancing them with momentum stocks that are currently driving market trends. On the consumption front, he pointed to ongoing strength in high-end consumption trends, with sectors like travel, leisure, automobiles, and consumer durables benefiting from rising disposable incomes.
At the same time, he sees a positive shift in rural consumption growth, which is beginning to lift demand for staples – a segment that had been under pressure. Sanghavi also flagged real estate stocks in India as attractive, supported by increased earnings and a shift in lifestyle patterns. “India is earning more, Indians are spending more,” he said, pointing to housing and discretionary spending as clear beneficiaries.
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(Edited by : Unnikrishnan)
