According to Bandyopadhyay, the sharp market correction seen over recent months is a natural adjustment after the late 2024 highs, and fundamentals are gradually catching up with valuations.
In an exclusive interview with ET Now, he noted that corporate performance is improving, Q4 results are expected to outperform Q3, and foreign institutional investor (FII) inflows have begun to pick up, indicating a positive trajectory for Indian capital markets.
On sectoral opportunities, Bandyopadhyay expressed strong conviction in the chemicals and agrochemicals space, especially specialty chemicals, which have been underperforming for the past two years.
“One area which I have been very bullish has been chemicals, agrochemicals, speciality chemicals. This was a completely bombed out sector and for last two years they have disappointed investors. But now the green shoots are clearly visible,” he said.
He cited the “China plus one” strategy, ongoing trade agreements with the US and EU, and growing exports as key tailwinds. UPL, a leading agrochemical company, was highlighted as a strong buy following its business restructuring, offering a focused growth path and attractive valuations. Aarti Industries, with its ongoing expansion plans, was also recommended as part of a long-term portfolio strategy.
The expert also pointed to opportunities in the capex and defense sectors. He emphasized companies like Larsen & Toubro (L&T) and Bharat Forge, which are expanding their defense businesses alongside their traditional operations. Rising order wins, strong international business margins, and ongoing capital expenditure make these companies attractive from a long-term perspective.Bandyopadhyay expressed caution on the solar panel sector, particularly Waaree and US-exposed players, noting that while current contracts may remain unaffected, future business faces uncertainty due to recent duty structures. As such, he advised against buying into this space until clarity emerges.
On energy-related public sector units (PSUs), Bandyopadhyay reaffirmed his positive stance.
“We believe there is a long-term positive as far as Indian energy space is concerned. What is happening is this sector has not given good return over the last one, one-and-a-half years and investors are a little frustrated,” he said.
He praised NTPC for its strong operational efficiencies, green energy integration, and forward-backward linkages. Power financiers such as PFC, and medium- to long-term options like IREDA, also present compelling opportunities given the upcoming surge in power capacity and credit demand.
Retail and telecom sectors were not overlooked. Value retail companies operating in tier III and IV locations, with strong footfall growth and expanding profitability, offer attractive long-term growth prospects. In telecom, Bharti Airtel remains fundamentally strong despite recent NBFC-related stock weakness, and Bandyopadhyay reiterated a buy recommendation, emphasizing robust core business metrics and market share gains.