Will Market Continue To Rally Or consolidate Ahead? Vaibhav Sanghavi Decodes

ASK Hedge Solutions CEO Vaibhav Sanghvi remains cautiously constructive despite Nifty’s struggle at 26,300. He believes the index will eventually break higher, driven by the first earnings upgrades in four quarters and robust corporate commentary pointing to a stronger H2 and ~15% growth in FY27. Key triggers missing: convincing FII inflows. Persistent outflows since 2021 are linked to high US rates, India’s relative valuations, tax structure and the AI-led shift to China/Taiwan/Korea. Consumption (autos showing strong demand), industrials (early private capex signs) and private banks (NIMs bottoming) are his preferred bets for the next 12-24 months. Large-caps offer better risk-reward than mid/small-caps, where growth must still catch up to valuations. Net long exposure has risen from near-zero in Sep 2024. Tailwinds currently outweigh headwinds; only a sharp growth slowdown or global shock can derail the recovery.