Expert View: Nifty 50 may soon be rebound; Do not prefer gold on equity, Naveen Kulkarni of Axis Securities PMS says stock market news

Expert View: Naveen Kulkarni, Chief Investment Officer Axis securities PMSBelieve Indian stock market An oversold has entered the zone and looks set for a rebound. In an interview with Nishant Kumar of Mint, Kulkarni said that gold is an important asset class to consider, but it should not come at the price of equity investment. Kulkarni also shared his insight on “trump tariffs”, on how to invest in outlook and pharma regions and someone large cap, mid-cap and small-caps. Here are edited excerpts of the interview:

Which factors are running down in the market? Is Trump the biggest cause of tariff, or is there a concern about killing development and currency with new climb?

Donald Trump’s The tariff is clearly a major factor contributing to the significant decline of Indian equity markets.

While the exact effect of the tariff is not clear, their impact on currency stability is severe, especially affecting returns for foreign portfolio investors.

Currency stability will be important for market consolidation.

The economy of India, which is portrayed as a growth economy, gets a higher due to its scale and future growth possibilities.

However, these tariffs can also affect global development, later affecting India’s development.

He said, the possibilities of development are showing symptoms of gradual improvement, indicating that the value in the Indian economy may soon emerge, leading to stabilization of currency.

As a result, while the current situation is challenging, it is expected to be short -lived.

The Nifty 50 is already 13% below its peak. Should we brace for a deep pain of 20%?

The Nifty 50 has experienced a significant 13 percent improvement, but comprehensive market reforms have been much higher.

Currently, more than 80 percent of stocks in BSE 500 are trading below their 200-day moving averages. Additionally, more than 40 percent of these shares have seen improvements of more than 30 percent from their extreme values. As a result, the market has entered an oversold zone.

In the last 20 years, the market has retaliated from similar technical levels, and we believe this example will not be different.

Therefore, it is unlikely that we will see a improvement of 10 percent from the current levels.

These conditions offer a good opportunity for long -term investors to consider adding to their portfolio, as the chances of dual -digit returns from these levels have increased significantly.

Should we be worried about India’s slow growth? Are the underlying issues deep roots, or is it just a cyclical recession?

India is a structurally growing economy, and there is no reason to be worried about its growth possibilities.

While linear growth can be challenging for any economy, the Indian economy is expected to grow rapidly in FY 26 compared to FY 25.

The current recession is only cyclical, and we can guess a reversal in the next few quarters. Therefore, there is no need to worry about the structural challenges of the country.

Do you think it’s time to come in contact with equity and buy more gold?

This is a good time for adding equity to your portfolio, as the market has significant nervousness sales, allowing quality companies to buy on attractive evaluation.

Regarding gold, it has emerged as a strong asset class, which is now competing with a fixed income asset class.

Globally, more institutions are preparing to invest in gold, which suggests that prices may remain stable and can provide more consistent returns in the future.

Therefore, while gold is an important asset class to consider, it should not come at the cost of equity investment, which will still provide better returns from the current levels.

How should we play financial sector after rate cut? Which stock do you find attractive?

Banks are currently trading on attractive evaluation, and many non-banking financial companies (NBFCs) have also become cheaper.

However, it is necessary to focus on the quality of the franchise, especially with a more secure lending portfolio. Therefore, investing in high quality financial services companies is a good strategy at the moment.

In the Trump era, what should be our strategy for IT and Pharma regions?

The IT sector is expected to perform well in the current era, but the emphasis will be on development and ability to give positive surprises.

At this point, the capacity of an important positive attitude from the IT region appears limited, which suggests that the returns will probably align with the overall market returns.

On the other hand, the Pharma sector has shown strong performance and has given good returns in 2024. However, returns in this field will depend much more on individual shares from current levels.

If someone has 1 lakh to invest, how should they allocate it in large-cap, mid-cap and small-cap shares? what would you suggest?

Large-Cap Stock provides good safety and reply capacity in 2025.

Meanwhile, after a significant improvement in the last few months, small and mid-cap stocks can give adequate returns.

In this segment, it is necessary to focus on quality, as high quality stocks can give strong returns from current levels.

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Disclaimer: The above views and recommendations belong to individual analysts, experts and brokerage firms, not mint. We recommend investors to consult certified experts before taking any investment decisions.