As Indian equities commerce in a decent vary with world uncertainties weighing on sentiment, Chouhan emphasizes the significance of bottom-up, value-driven investing, particularly in a panorama the place valuations look like working forward of earnings.
He shares insights on retail investor behaviour, IPO momentum, sectoral alternatives, and why good cash is gravitating towards hospitals, digital-first corporations, and capital market-linked companies. Edited Excerpts –
Q) The second half of 2025 began on a unstable be aware. How are you wanting on the markets? One of many causes may very well be FIIs promoting, which continues in July.
A) Markets are buying and selling in a decent vary, and we imagine they are going to stay directionless till readability emerges on tariff-related bulletins from Mr. Trump. Aggressive shopping for is absent, as buyers are selectively attempting to find worth.
FIIs proceed to promote, largely on account of stretched valuations and the attractiveness of the US bond market. Moreover, a weaker forex—hovering round 86—provides to the detrimental sentiment for international buyers.
Q) IPOs have picked up just lately, however EY report highlighted that Indian IPO exercise within the first half of 2025 recorded 108 offers elevating US$4.6b, demonstrating market resilience regardless of a 30% decline in transactions.
A) IPO enthusiasm is being pushed by retail flows and QIP cash, however sustainability will depend on post-listing efficiency. Worth-backed corporations will nonetheless discover takers, even when broader exercise moderates.
Q) What’s the preliminary sense you’re choosing up from the June quarter outcomes, which have began to return out?
A) Q1FY26 outcomes to date lack surprises, coming in largely in line or barely under expectations.
Q) Is the present fairness market rally largely liquidity-driven, or are there ample earnings fundamentals to again the optimism?
A) We’re witnessing a basic bottom-up method out there, supported by robust home macro tailwinds.
Q) SIPs crossed Rs27K – what does it discuss concerning the retail investor behaviour change?
A) Retail buyers are on the best path—sticking to a disciplined technique that aligns with long-term wealth creation. This shift in habits appears structural, not cyclical.
Q) The place are the pockets of alternatives coming from?
A) In a market the place valuations run forward of earnings, the one prudent technique is selective, bottom-up, and value-driven investing.
Q) The place is the good cash transferring?
A) Hospitals, capital market-linked companies, and digital-first corporations look like within the highlight, steadily attracting contemporary investments from knowledgeable buyers and establishments alike.
Q) How ought to one play the small & midcap area?
A) Inventory choice calls for warning. Earlier than investing, give high precedence to company governance, analyze the P&L and stability sheet, and assess the corporate’s market share and enterprise mannequin in depth.
(Disclaimer: Suggestions, ideas, views, and opinions given by consultants are their very own. These don’t signify the views of the Financial Instances)
