While advising women on these International Women's Day, Sonam Srivastava, Founder and Fund Manager at Wright Research PMS told Moneycontrol that in a market that has seen severe correction, women should focus on quality stocks with strong fundamentals, ensuring that they invest in businesses with solid earnings growth, robust balance sheets, and reasonable valuations rather than chasing short-term dips.
A well-balanced allocation could include financials (20%), consumer goods (20%), manufacturing and capex (20%), technology (15%), pharmaceuticals (15%), and agrochemicals (10%).
Further, even after more than 15 percent from the top, Srivastava with more 11 years of experience in equity markets and mutual funds said while the market has absorbed a significant portion of its correction over the past four months, she does not believe it is entirely over.
What is your advice to women who want to be successful investors on this National Women's Day?
Women seeking investing success should cultivate a disciplined approach that aligns with personal goals, risk tolerance, and timelines. Begin with clear objectives, such as capital preservation, growth, or wealth creation, and focus on developing fundamental knowledge of markets. Research investment opportunities thoroughly, examining financials, competitive advantages, and future growth prospects. Avoid emotional decision-making by creating a structured plan and diversifying across asset classes like equities, fixed income, and even alternative investments if appropriate.
Consistently review your portfolio, rebalancing when necessary to maintain target allocations. Emphasize long-term wealth accumulation instead of quick gains, as steady compounding yields better results. Networking with peers, joining investment clubs, and seeking professional guidance can provide valuable insights and perspective. When challenges arise, learn from them and refine your strategy rather than reacting impulsively. Ultimately, successful investing requires patience, consistency, and a commitment to ongoing education, qualities that empower women to excel in the financial arena.
If Women want to invest their hard-earned money in a market that has seen a severe correction since the end of September, which sectors would you suggest for investment in terms of percentage out of 100%?
In a market that has seen a severe correction, women investors should focus on quality stocks with strong fundamentals, ensuring that they invest in businesses with solid earnings growth, robust balance sheets, and reasonable valuations rather than chasing short-term dips. A well-balanced allocation could include financials (20%), as strong credit demand and stable asset quality make select banks and NBFCs attractive for long-term wealth creation. Consumer goods (20%) provide defensive stability, benefiting from steady demand and rising disposable incomes.
Manufacturing and capex (20%) remain key drivers of India’s economic growth, supported by infrastructure expansion and government incentives like PLI. Technology (15%), despite near-term volatility, offers strong long-term opportunities in digital transformation, AI, and cloud computing. Pharmaceuticals (15%) are a mix of defensiveness and structural growth, driven by rising healthcare spending and global demand.
Agrochemicals (10%), benefiting from India’s leadership in exports and increasing domestic adoption, provide further diversification. With valuations in many quality stocks becoming more reasonable post-correction, this balanced allocation ensures both stability and long-term growth potential while mitigating downside risks.
Are you adding exposure to financials and IT in the current market correction?
Yes, we have added exposure to banks and mid & large-cap IT in the current market correction. Financials, particularly well-capitalized banks, continue to benefit from strong credit growth, improving asset quality, and stable interest rate dynamics, making this an attractive entry point. We have selectively increased positions in leading banks that demonstrate solid loan book growth and resilient profitability.
In IT, while the sector has faced global macro headwinds, we see long-term value in both mid and large-cap IT companies with strong digital, cloud, and AI-driven businesses. The correction has brought valuations in quality IT stocks to more reasonable levels, offering a good opportunity to accumulate fundamentally strong names. While near-term uncertainty remains, the long-term structural demand for digital transformation and automation makes select IT stocks attractive for gradual accumulation. Our approach remains focused on quality names with sustainable earnings growth and competitive advantages.
Do you think the market has finished most of its correction seen in the past four months?
While the market has absorbed a significant portion of its correction over the past four months, I do not believe it is entirely over. The recent decline was driven by global rate uncertainty, FII outflows, stretched valuations, and sector-specific earnings concerns, particularly in IT and export-oriented businesses. Although valuations in several quality stocks have now moderated to more reasonable levels, key risks remain. The US Federal Reserve's stance on rate cuts is still uncertain, and any further delay could impact liquidity and investor sentiment.
Additionally, small and midcap valuations, despite some cooling off, remain elevated in certain segments, leaving room for further re-rating. Corporate earnings have held up relatively well, but if growth disappoints, we could see another wave of selling pressure. While large caps and select sectors like financials, consumer goods, and manufacturing appear to be stabilizing, broader market volatility may persist. Hence, the correction may not be entirely over, and a cautious, selective approach is still warranted.
Which sectors will be the leaders of the next market rally?
The next market rally is likely to be led by financials, consumption, manufacturing, and technology. Financials remain strong due to robust credit growth, stable NPAs, and favourable economic conditions. Consumption will benefit from rising disposable incomes and rural demand recovery, particularly in FMCG, retail, and auto sectors. Manufacturing, especially capital goods and infrastructure, will gain from government policies like PLI and rising domestic capex.
Technology will continue to be a key growth driver, particularly in AI, cloud computing, and cybersecurity, despite near-term challenges in the IT services space. Additionally, green energy and defense sectors are emerging as long-term themes due to India’s push for self-reliance and sustainability. A mix of these cyclical and structural growth stories will define market leadership in the next upcycle.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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