Near-term market pain likely, says Arun Kejriwal; cautious on IT, sees buying opportunity in PNB Housing

Market expert Arun Kejriwal believes the market could face some near-term pressure. "On the domestic front, the June 2025 quarter (Q1 FY26) results were a wake-up call for many of us. The one major element that appears to be missing is consumption. We still seem to be lacking on that front, and it's a concern for everyone connected to the market," he said in a conversation with Business Today.

Speaking about the Nifty50 index, he noted, "We are currently around the 24,500–24,600 levels, and we may head lower in the coming months. However, after that, we could see a rebound to levels higher than where we are now. In short, there's still some downside left, which may factor in uncertainties around tariffs, trade wars and the global economic, political or social issues currently unfolding. Once these stabilise, the market will start to rebuild strength."

Sharing his outlook on the IT sector, the market veteran said he would adopt a cautious stance. "Let the trade tariff war settle over the next 30–35 days, as supply chain systems also need to stabilise for the US. It's well known that everyday household or low-value items, as the US would term them, are not manufactured in that country. It depends on far-flung nations like China, India, Vietnam on one side, Mexico and Brazil on another and Canada and Europe on the third. So, a lot is still a work in progress. We need to wait and see where things stabilise," he said.

Commenting on PNB Housing Finance Ltd, which recently took a hit following the MD & CEO's resignation, Kejriwal remarked, "Whatever has happened seems like an aberration and one should view this stock more carefully as a good buying opportunity. It's now available at a significantly discounted price and I don't believe the earnings impact justifies the extent of the price correction we've seen."

PNB Housing Finance had announced that Girish Kousgi would step down as MD & CEO effective October 28, 2025, to pursue career opportunities outside the organisation.

On the earnings front, the company reported a net profit of Rs 534 crore for Q1 FY26, reflecting a 23 per cent year-on-year (YoY) growth. Its retail loan asset portfolio also rose 18 per cent YoY to Rs 76,923 crore.