Markets are in a corrective phase and investors are turning cautious, but DSP Mutual Fund’s Sahil Kapoor says this is also when opportunities begin to appear. He points out that some large-cap stocks are now trading at valuation levels last seen during the 2008 Global Financial Crisis, making parts of the market look more attractive.He remains positive on large private banks, given their stable profitability and strong balance sheets. These banks are delivering Return on Assets (RoA) of about 2% with leverage of around seven times, which shows efficient capital use.
Kapoor also sees a potential opportunity in IT. He notes that the sector’s weight in the Nifty has dropped to about 8% from over 11% earlier, suggesting investors have reduced exposure. This under-ownership could make IT an interesting contra play.At the same time, he is cautious on FMCG stocks, where valuations continue to stay high despite steady growth, leaving limited room for fresh entry.
On gold, Kapoor says prices remain volatile and the broader rally may be nearing its peak.
Overall, he sees this as a selective market, with opportunities emerging in specific pockets even as expensive areas still call for caution.
First Published: Mar 25, 2026 6:13 PM IS
