IT muted, banks provide stability
Maheshwari noted that IT results have largely met or fallen short of expectations, with limited visibility on demand recovery. “There is no clear positive outlook coming from IT earnings declared so far,” he said. In contrast, banking results have been stronger, barring one-time provisions related to priority sector lending (PSL) norms at large private lenders.
According to him, core banking performance remains healthy, with improving net interest margins (NIMs) and clear guidance on growth over the next few quarters. Valuations for large private banks appear attractive, as many frontline names have delivered muted stock returns over the past 12–18 months.
Smaller banks, PSU lenders may outperform near term
Maheshwari believes smaller private banks are currently benefiting from momentum and favourable valuations, allowing them to outperform larger peers in the short term. Within banking, he expects PSU banks to lead initially over the next couple of quarters, followed by a catch-up in large private sector lenders as earnings visibility improves.
Metals rally to continue, but with caution
On metals, Maheshwari said prices have seen a sharp rally over the past quarter and could continue rising in the near term. However, he cautioned that the rally appears partly driven by financial flows into hard assets amid geopolitical uncertainty and reduced confidence in the dollar, rather than a strong revival in physical demand. China’s manufacturing recovery remains a key variable to watch.
Real estate demand strong despite valuation concerns
The real estate sector continues to show robust on-ground demand, especially in major markets such as Mumbai, Bengaluru and Delhi NCR. Strong order bookings and deliveries support the sector’s fundamentals, though elevated valuations have led to stock-level corrections and consolidation.
NBFCs and select infra stocks in spotlight
Maheshwari remains constructive on NBFCs, citing easing funding costs and benign credit conditions. He expects performance to broaden beyond gold-focused lenders this year. In infrastructure, select capital goods and power equipment players look attractive after sharp corrections, particularly those gaining traction in data centre and export-linked opportunities.
2026 themes: banks and metals
Looking ahead to 2026, Maheshwari sees banking as a well-established growth theme, while metals could continue to surprise on the upside as global investors increase allocation to real assets amid persistent geopolitical risks.
Overall, the market expert expects sector rotation to continue, with investors favouring value, earnings visibility and balance-sheet strength over high-growth but uncertain segments.