Market Commentary: Where Are Stocks & Indices Headed Now?

On Business Today Television, fund manager Sunil Shah reflected on a challenging 2025 for Indian equities, marked by negligible returns amid profit booking, despite government reforms like GST cuts and strong retail inflows. He attributed the stagnation to $17 billion in FII outflows, diverted funds to a booming IPO market (where ~60% was OFS benefiting promoters rather than companies), and high valuations. Mid and small caps suffered sharp corrections, teaching new investors - now over 20 crore demat accounts - lessons in valuation and cycles.The rupee hit record lows around 90.8 due to trade uncertainties. Shah remained cautious, holding high cash in his PMS and awaiting better valuations post-Budget.He favored quality stocks like Garden Reach Shipbuilders (strong order book growth to ₹80,000 crore) and SJS Enterprises (high margins, debt-free) for gradual SIP accumulation.He advised focusing on moats, high ROE, and free cash flow, while staying invested in India's structural growth story.