In opposition to this backdrop, Raychaudhuri emphasised specializing in home development alternatives reasonably than export-oriented sectors. He mentioned he would keep away from leaping into exporters and as a substitute search for areas the place development aligns with affordable valuations, highlighting fundamental supplies, choose industrials, and shopper discretionary segments as pockets of alternative — whereas stressing the necessity to stay selective. Shares reminiscent of Tata Metal, Hindustan Zinc, and Larsen & Toubro replicate the home cyclical themes he prefers.
He flagged shopper staples and IT providers as areas of warning, arguing that staples endure from low development regardless of elevated valuations and that IT faces pricing strain as synthetic intelligence adjustments how shoppers consider contracts, doubtlessly compressing margins. Based on him, IT shares might solely turn out to be enticing at valuations nearer to 10–12 instances earnings, implying both draw back or a protracted interval of sideways efficiency.
Whereas acknowledging that some know-how companies may stand out, he mentioned firms demonstrating a transparent capacity to reinvent themselves — together with via partnerships reminiscent of Infosys’ collaboration with AI gamers — might turn out to be extra attention-grabbing over time, although he would look ahead to clearer proof in development or margin traits earlier than allocating capital.
On overseas flows, Raychaudhuri famous that international traders at the moment have compelling options throughout Asia the place earnings development is stronger and valuations are decrease, suggesting that till this hole narrows, it could be troublesome for India to see a sustained return of overseas institutional shopping for.
