Markets may have bottomed; commodities in focus, IT underweight: Bajaj Finserv AMC

Nimesh Chandan, CIO at Bajaj Finserv Asset Management Company, said the market may have bottomed out as expectations around global stability improve. “Instead of moving into the storm, we are moving slowly out of the storm,” he said, adding that markets are pricing in a possible resolution to geopolitical tensions.He expects oil supply disruptions to be temporary. “In four to six weeks, we start seeing more normalised flows,” he said. However, a prolonged disruption could impact inflation.

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India’s economy and corporate sector remain stable. He said recent earnings trends support a steady medium-term view, even as markets remain range-bound in the near term.
He sees commodities as a key investment theme, supported by supply constraints and rising demand across metals and energy, and remain underappreciated.Both ferrous and non-ferrous metals, along with cement, could benefit from these trends. He also highlighted defence as a long-term opportunity, noting that rising global spending will support order books.

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Among sectors, Chandan remains cautious on IT services as it faces both structural and cyclical pressures, including slower growth and the impact of new technologies. While the downside may be limited due to valuations, some pain remains for IT stocks.

He remains positive on healthcare, citing stable demand and export benefits. The sector, he said, is less affected by short-term global disruptions and continues to benefit from long-term growth drivers.

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