Markets in no man’s land, stock picking key: Trust MF’s Mihir Vora

Mihir Vora, CIO at Trust Mutual Fund, which manages assets worth over ₹3,200 crore, believes the equity market is currently in a ‘no man’s land’,  supported by strong domestic and foreign flows on one hand, but weighed down by uncertain earnings on the other.He expects liquidity to remain supportive, both globally and locally, but said fundamentals in global markets are unclear. While the current Indian macro data is mixed, he sees potential for a pickup in the second half of the year due to government initiatives and continued liquidity.

On a sectoral basis, Vora pointed out that areas like construction, capital goods, and defence may benefit from a low base effect in the June and September quarters. Metals may also see positive surprises. Among financials, he said retail-focused non-banking financial companies (NBFCs) may fare better than banks, which are still adjusting to lower interest rates.

Also Read | Bandhan’s Manish Gunwani bets on undervalued consumer plays, favours AMCs and insurersHe remains constructive on the capex and investment-driven sectors and sees value emerging in discretionary consumption names. “Some of the consumer durables and auto stocks… offer good pockets of value,” he said, even if results are not yet strong.

Vora remains cautious on large-cap IT stocks. “We are bearish,” he said, noting that even before the impact of generative AI, growth in the sector had slowed to below 10%. He compared the trend to the fast-moving consumer goods (FMCG) sector, which saw fast growth in earlier decades before slowing down. Unless IT companies reinvent their models, he expects them to remain in single-digit growth territory.
He sees long-term potential in capital market-related businesses, despite near-term corrections in trading volumes. “There is always going to be overshoot and undershoot,” he said, pointing to rising income levels and investor participation as key growth drivers. “These sectors… will continue to grow at a rate faster than the rest of the market,” he added.Also Read | Nirmal Bang’s Arora says market unlikely to reclaim previous highs in 2025

Vora noted that strategic stake sales and private equity-led restructurings have generally had good outcomes over the past decade. “They bring in a more professional approach and shake up cultures,” he said.

On autos, he remains optimistic about premium and rural demand. “The rural segment still continues to do well,” Vora said, adding that SUVs and other premium vehicles are part of his investment focus.

Overall, Vora expects the current phase to be driven by stock selection rather than broad market moves. “For the next few weeks or few months, it’s going to be a selective market.”

For the full interview, watch the accompanying video

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