From Banks to Metals: Where Neeraj Dewan sees value now

A sense of relief has returned to the markets after recent geopolitical tensions showed signs of easing. With equities bouncing back sharply over the past few sessions, investors are now debating whether a near-term bottom has already been formed.

Market expert Neeraj Dewan believes there are early signs of stability, though risks remain.

“Since last week, markets have recovered and many stocks have moved up from their lows. It looks like a short-term bottom may be in place, but we must watch whether the ceasefire sustains. For investors, this is an opportunity in largecap blue chips, though we are not fully out of the woods yet.”

Banks: PSU Strength, Private Value

The banking sector continues to be a key pillar for portfolios, with Dewan maintaining a positive stance on PSU banks while also highlighting value in private lenders.

“I remain positive on PSU banks given their balance sheets and credit growth outlook. At the same time, large private banks like HDFC Bank and ICICI Bank are attractive on valuations. Investors should have exposure to both, but slightly reduce overall financial allocation.”

Correction Opens Doors for FIIs
Dewan points out that the recent correction could mark a turning point, particularly in attracting foreign flows back into India.

“We have seen a meaningful correction of around 15–17%, which is significant. This could encourage FIIs to gradually return, which has been a key concern over the past year.”

He also stresses the importance of sector rotation in such phases.

“There are always opportunities in sectors that have corrected recently. Investors should focus on strong companies with long-term potential rather than short-term noise.”

Metals: Still a Strong Play
The metals sector has delivered strong returns, and Dewan believes the structural story remains intact.

“I remain positive on metals. Post-resolution, demand will rise across ferrous and non-ferrous segments, supported by global rebuilding and manufacturing trends.”

Autos: Be Selective
While certain developments in the auto space have been encouraging, Dewan advises a cautious and selective approach.

“Bosch news is positive, but valuations have run up, so better entry levels are needed. I prefer commercial vehicles, but remain cautious on passenger vehicles and two-wheelers due to demand normalisation and macro factors.”

The Takeaway
Markets may have found some footing, but uncertainty hasn’t fully faded. For investors, the strategy remains unchanged—stay patient, focus on quality, and use corrections as opportunities rather than signals for panic.