Strong Sectors Vs Stock Picking – What Works Now?

Research Head at Vachana Investments, shares his sharp sectoral insights for the current market environment. He categorises the market into two clear investment approaches — sectors where most stocks can perform well due to strong tailwinds, and sectors where a bottom-up, stock-specific strategy is essential. While he remains cautious on IT, pharma, and metals, he highlights that within IT, stocks like Tata Elxsi, OFSS, and Coforge still present selective opportunities. However, he stresses that the recent rise in IT stocks is largely driven by short covering rather than genuine buying interest. On the other hand, sectors such as private banks, insurance, oil marketing companies (OMCs), and NBFCs continue to show broader strength and are better suited for investors looking for stability across the board.