Samvat 2072: Market to correct again, go for portfolio approach: Mehta

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26 Aug, 2025 12:21

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Dipan Mehta, member BSE & NSE believes that market uncertainties still exist in aftermath of Bihar elections and in anticipation of Federal Reserve’s rate hike in December. He says the correction in market will continue for some time. Retails investors are showing more interest in market via mutual funds and equity with a long-term view, he says. Mehta advises investors to go for portfolio approach in the New Year with a few stocks each from pharmaceutical, FMCG and auto space. In pharma space, he is bullish on Aurobindo Pharma, Torrent Pharma and Cadila. Besides this, in auto sector, he prefers Maruti and Eicher and Yes Bank, SKS Microfinance in the banking sector.Below is the transcript of Dipan Mehta’s interview on CNBC-TV18.

Sonia: What is the sense among retail investors now, are they disillusioned after what has happened in the last couple of weeks and months or is there still a fair amount of enthusiasm from the retail community? A: There is a lot of interest coming in from the retail community and we are seeing for the first time that they are trying to access the equity markets either through mutual funds or through portfolio advisors and that is very positive rather than trying to invest by themselves. I think lessons of the past have clearly been learnt at least this time around. What is also very surprising is that their view certainly is long term. Typically what we saw was day trading or speculating in the F&O markets, that has not yet picked up and hopefully it shouldn't pickup. There is a great deal of appetite and interest as far as retail investors are concerned and it has not been such a bad year for retail investors because a lot of them have invested in bluechip midcap stocks and those have done exceedingly well over the past 12-24 months or so and largely the portfolios also at this point of time are focused on the quality midcap stocks, be it in pharmaceutical or private sector banks or consumer goods or consumer oriented stocks. I don't think retail is that much disappointed over the past year, although optically the Sensex and the Nifty have show declines. My sense is that with every opportunity, with corrections they are looking at increasing their allocation to equity considering that other asset classes are not looking that attractive at this point of time.Latha: What is the Diwali advice to our viewers, sectors, stocks, anything that catches the eye? A: What I can advice is that, take a portfolio approach to stocks and buy 3-4 pharma, 3-4 financials, 2-3 stocks in FMCG and capital goods. If I may give the list to your viewers and investors I think banks, you could look at Yes Bank, maybe Capital First or even SKS Micro. Within the pharmaceutical, top 3 picks are Aurobindo Pharma, Cadila and Torrent Pharma. Then in FMCG we have Emami, Dabur, Jyoti Laboratories. Capital goods you could look at Inox Wind. Couple of auto stocks also look interesting, Maruti as well as Eicher Motors. Having said that, all these stocks we and our investors have invested in, so we have a vested interest as a measure of disclosure.