Exclusive | Markets At Record Highs | Shankar Sharma Reveals Which Sectors To Invest In

In an interview to Business Today TV, Market veteran Shankar Sharma cast strong doubt on India’s headline GDP numbers, arguing that with a realistic 4-4.5% deflator (instead of the official ~0.5%), real GDP growth is closer to 4-4.5%, signaling a sharp slowdown. This, he says, explains why Nifty hits records but refuses to sustain upward momentum, while mid- and small-caps have suffered brutal corrections. Markets see through inflated data and recognize weak broad-economy growth, high consumer indebtedness, saturated retail lending, and mediocre corporate earnings. GST cuts boosted auto sales significantly (large absolute savings) but had little impact on lower-ticket items. Globally, Sharma remains bearish on the US and India (worst performers in 18 months) and heavily allocated to China (40%), Taiwan, Korea, Europe, and LatAm. He views India as in a relative bear market and cautions that index-level returns may barely beat fixed deposits for years. Yet he continues selective small-cap hunting, believing only bottom-up stock-picking in quality small companies can deliver meaningful returns in this tough phase.