Expert outlook: Shift from gold to equities; focus on autos, banks, and metals

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Market expert Rohit Srivastava -- Founder of Indiacharts and Strike Money -- believes the Indian market is at an interesting juncture, poised for a potential upswing driven by selective sector performance and attractive valuations in the broader market. Speaking with CNBC TV18, he noted that despite foreign institutional investor (FII) outflows, the market has been supported by a 'balancing act' of policy measures like tax and interest rate cuts, coupled with resilient domestic investment flows.

Srivastava highlighted that while the Nifty has managed to hold its ground, the broader market has undergone a significant corrective phase over the last year and a half. This has brought valuations for many mid and small-cap stocks to more appealing levels. "Historically, some of these stocks used to be at PE ratios of 80, 100 or more," he explained. "The ones that are showing growth have managed to bring those valuations down to even the 30s or less in many cases." This correction, he argues, has created attractive bottom-up investment ideas.

Looking ahead, Srivastava identified three key sectors as the 'easiest bets' for investors. First, he expects financials and banks, which have been top performers, to continue their strong run and make a comeback in everyone's investment list. Second, he is bullish on the metals sector, which he described as an outlier that has already done well. "There is a case for it to do significantly better as the dollar continues to weaken and interest rates continue to drop both in the US and India," Srivastava stated, suggesting it will continue to outperform.

The third key area of focus is the auto sector. As an interest-rate sensitive space, he believes it has been outperforming and will continue to do so. Beyond these top three, he also sees opportunities in the energy sector, particularly among mid and small-cap stocks that have seen corrections and now appear relatively cheap.

Srivastava advised caution and asked investors to avoid precious metals from an asset-allocation standpoint, saying they performed exceptionally well in 2025 but are unlikely to repeat that strength next year. He suggested that after a period of strong performance, it is now time to shift capital from this asset class back into stocks. He noted that their 2026 strategy report describes “equity as the new gold,” signalling a shift in preference away from precious metals and back towards equities.