Neeraj Dewan, a market expert, has advised investors to exercise caution with IT stocks following a sharp correction, while highlighting opportunities in power, energy, and steel sectors. Dewan noted that weak guidance from technology companies and recent position building have contributed to the IT sector's volatility.
Dewan remains optimistic about the power and energy sectors, particularly in renewable energy, battery storage, and infrastructure companies. He cautioned against adding positions in BHEL after its recent surge but sees value in companies investing in future energy solutions.
In the aviation sector, Dewan is constructive, suggesting that stabilizing crude oil prices could support airline profitability. He believes the peak in oil prices may have passed, making aviation stocks attractive for gradual accumulation.
“The guidance given by most IT companies was not that great.”
Neeraj Dewan
The steel sector also garners Dewan's optimism, with domestic prices and production trends supporting profitability. Despite potential short-term energy cost challenges, he views the earnings outlook as favorable.
Dewan prefers commercial vehicle manufacturers over oil marketing companies, citing strong order books and infrastructure spending as key drivers. He remains neutral on OMCs until crude prices stabilize.
“If someone is holding BHEL, they can continue to hold, but I will not advise adding at current levels.”
Neeraj Dewan
Despite market corrections, Dewan advises against pessimism, suggesting that many negatives are already priced in. He favors sectors like infrastructure, energy, FMCG, and select pharmaceuticals for long-term investment opportunities.
Background
The recent market corrections have been influenced by various factors, including weak guidance from IT companies and fluctuations in crude oil prices. Investors are navigating these challenges by focusing on sectors with strong long-term growth potential.
Looking ahead, Dewan's strategy focuses on selective accumulation during market weakness, with an emphasis on sectors offering long-term growth potential. Investors should watch for improvements in IT sector guidance to reassess opportunities.
