Avoid over-generalising markets, focus on select opportunities: Maran Govindasamy

Maran Govindasamy, executive director at Unifi Capital

Investors should avoid making broad conclusions about the entire market and instead focus on specific opportunities, said Maran Govindasamy, executive director at Unifi Capital.

Speaking at the second edition of Moneycontrol Global Wealth Summit 2026, Govindasamy cautioned against interpreting markets through a single lens. “One thing we should avoid doing today is trying to make sense of the whole market in an over-generalised manner,” he said.

He noted that the strong rally between 2021 and 2024 delivered unusually high returns with low volatility, which could now be followed by a period of lower returns or higher volatility. “Such periods usually will be followed by periods of lower than long-term average returns or higher volatility, or both,” he said.

Govindasamy said valuation gaps remain significant across the market. “Valuation divergences… over the last three or four years have been sharply higher,” he said, adding that while valuations have corrected, most stocks are not yet in the investable range.

However, he said opportunities are emerging in specific pockets. “There are pockets of the market which are much cheaper today than what they were three or four years back,” he said, adding that sector rotation could also reshape market leadership over the next three to five years.