He also sees foreign institutional investors (FIIs) turning buyers later this year given that India underperformed the MSCI Emerging Markets Index last year and relative valuations are now closer to long-term averages.
“FIIs will sell less,” he said, adding that this shift could help the market through the year.Among sectors, Jaipuria expects metals to perform over the next 12 to 18 months despite volatility. He cited recent safeguard duties on hot-rolled coils as a factor that may support domestic producers. “It’s a space where investors will make money,” he said, noting that protectionist measures could help the sector this year.
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On information technology stocks, including TCS and Infosys, Jaipuria said he does not expect a strong recovery. He pointed to structural issues linked to artificial intelligence that could keep growth weak for several years.
He said Valentis Advisors remains underweight on IT and views any buying as tactical rather than long-term.
Jaipuria said chemicals and pharmaceuticals are areas to watch selectively. While the broader chemicals sector still faces challenges from China competition, he said stock-specific triggers such as new capacity or export benefits could drive earnings. He added that pharma stocks, which have underperformed for a long period, are now at levels where pessimism may already be priced in.
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