Narrow market sees select stocks shine as broader earnings remain muted: Rohit Srivastava

The ongoing earnings season is underscoring the increasingly selective nature of the Indian equity market, with only a handful of stocks delivering standout performances while broader indices struggle to gain meaningful traction.

Speaking on ET Now, Rohit Srivastava, Founder, Strike Money Analytics & Indiacharts pointed out that the current phase is marked by a narrow leadership, where isolated pockets of strength are driving gains rather than a broad-based rally.

“So, this is a very-very narrow market. We are seeing few pockets where you are getting growth. If you look at the total earning season for the quarter, it has not been that great for the Nifty 50, but M&M and earlier State Bank have been the ones that have surprised or at least done better and that is why you are seeing these stocks make new highs. But it is not an across the board event that we are seeing, so therefore it is very-very stock specific and it is not even like the entire sector doing that, so yes, M&M has done fine, but we will watch the next few days how it aligns with the sector.”

Mahindra & Mahindra’s performance, along with earlier strength in State Bank of India, has helped these counters touch new highs, even as much of the market remains under pressure. However, Srivastava cautioned that such moves should not be mistaken for a broader sectoral or market-wide uptrend.

On the outlook for other opportunities, Srivastava said the current environment calls for a more cautious and tactical approach, with investors needing to be highly selective.

“So, we are playing it very-very cautiously. If I have to look for value, it will come in very-very vague segments of the market. For example, sugar is one of them where there is deep value but it has been an underperforming segment. But if somebody has to look for value, then I would have to look at places like that where nothing is happening.”At the same time, he flagged continued weakness in certain areas, particularly technology stocks, where pressure may persist.“At the same time there are some very-very weak parts of the market that are still getting hammered, for example, technology, so that is where we have to completely avoid trying to buy the dip. In fact, there may be more opportunities for traders on the short side of the IT sector. So, very-very different approach that we are having to take in the type of market that we are in. We cannot always be bottom fishing. There are now a lot of opportunities on the short side as well.”

Overall, the message from the charts and earnings commentary is clear: the market is rewarding select stock-specific stories, while broad-based participation remains limited. For investors and traders alike, this environment may demand sharper stock selection, greater discipline, and a willingness to adapt strategies to both long and short opportunities.