At the same time, an unusually early onset of summer has opened up multiple investment themes—from consumer durables to power demand—leaving investors wondering where the real opportunities lie.
Market expert Neeraj Dewan believes the environment calls for caution but also offers selective opportunities for investors willing to take a longer-term view.
Volatility Returns After Brief Stability
Markets had been witnessing broader participation after the trade deal announcement, but the last two weeks have reversed that trend as geopolitical risks intensified.
“Last two weeks have not been great at all for the market. Post the trade deal announcement, things were improving steadily and you were seeing some wider participation in the market. But then last two weeks have been again with all this war situation and the crisis there, things have become totally different right now.”The uncertainty around crude oil prices is particularly important for India and other Asian economies that depend heavily on imported energy.Energy, Defensives Offer Tactical OpportunitiesDespite the volatility, Dewan believes certain pockets of the market could benefit in the near term—especially energy companies and defensive sectors.“There can be some short-term opportunities which can be in the form of energy company, something like you mentioned ONGC, whether it is Coal India or the other power companies which have their own coal mines, so there are opportunities there. And defensives may also again come into play. There are FMCG companies where again people will go for defensives right now.”
Companies such as Oil and Natural Gas Corporation and Coal India could benefit from rising energy prices, while defensive sectors like FMCG and pharmaceuticals may attract investors seeking stability.
“There are pharma companies which if you are getting dips there, those are also opportunities because pharma is one space which has been strong post covid and which may remain strong going ahead also.”
Patience Key for Long-Term InvestorsDewan cautioned that investors should avoid rushing into the market despite the corrections being seen in many stocks. “If you are an investor who has some surplus cash in this kind of a market, you do not need to be in a hurry to buy right now because you are getting better opportunities on a daily basis. Stock that you like are correcting on a daily basis.” He added that investors should stagger their investments and remain prepared for a prolonged period of volatility.
“One needs to be a little more cautious in putting in money but definitely put in small amounts on dips, but then this can be a long haul because you have not seen this kind of a war before.”
Food Delivery Platforms Attractive for Long-TermDewan also sees long-term potential in India’s food delivery platforms, even though the stocks may remain volatile in the near term. Platforms like Swiggy and Zomato have corrected recently, creating what he believes could be a gradual accumulation opportunity.
“For a person who has the money and he stays invested for two to three years, I think these are opportunities. Because of this specific event, the stocks have corrected and so these are opportunities where one can accumulate slowly these. Of the two, I like Eternal more. So, I would be looking at that.”
Auto Stocks Correct, But Structural Story IntactThe correction in auto stocks has also caught investor attention, especially with the growing electric vehicle (EV) theme. Dewan highlighted companies like Mahindra & Mahindra and TVS Motor Company as strong long-term portfolio names. “These are good companies, these are portfolio stocks and some events like this make them correct. So, for a portfolio investor definitely these are opportunities.”
However, he warned investors not to assume the correction is over. “Do not expect that you buy them today and you will not see another correction. If you are prepared that you can buy on dips, you can add more if the stock falls more and stay invested for a couple of years, I think these are good opportunities.”
Consumption Outlook Faces Short-Term NoiseRecent data had shown strong consumption trends following GST cuts and tax relief measures, but Dewan expects some short-term disruption due to geopolitical uncertainty and seasonal liquidity pressures.
“This quarter there can be some dip because of all this noise that is coming and March anyways there is liquidity also which gets sucked because of advance tax.”
Still, he believes domestic fundamentals remain largely intact. “I am not saying that there is any basic problem domestically. Domestically things are good. GST cut, income tax advantage that we got last budget, there are a lot of things which are going to play for the domestic market.”
PSU Energy Stocks Back in FocusFinally, Dewan pointed to opportunities in select public sector companies, particularly in energy and mining. “Energy stocks from the PSU basket and even mines and mineral companies there you are getting corrections, maybe an opportunity for a long-term investor.”
Companies such as NTPC and NTPC Green Energy could also see investor interest as energy markets tighten. “The way crude and gas prices are going up, I think they can get some benefit from them.”
While markets remain uncertain due to geopolitical developments and rising energy costs, Dewan believes the correction is opening selective opportunities. For investors with patience and a long-term horizon, gradual accumulation in quality stocks—especially on declines—may prove rewarding once the global situation stabilises.
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