“Extreme caution is the word,” he told ET Now. “Even if value buying is recommended, it should be done in small parts.”
Don’t try to call the bottom
Bandyopadhyay’s first and most emphatic point is that nobody knows where the floor is. Markets may have already absorbed the worst of the fall — or they may not have. With geopolitical uncertainty still escalating, he advises investors to treat any buying like a SIP: spread it out, keep it small, and stay ready for further turbulence.
This is not a call to stay out of the market entirely. Opportunities are emerging for long-term value buyers, he acknowledges. But timing a lump-sum entry right now, he warns, is a gamble nobody needs to take.
On banks: Pick only the biggest names, very slowly
Bank Nifty has taken a beating, and while that has made valuations more attractive, Bandyopadhyay is not ready to dive in. The RBI’s recent circular on gross forex positions caused confusion, but he says that is not even the real worry. The deeper concern is an economy that is slowing down, weakening credit demand, and the asset quality stress that tends to follow.
If you are an aggressive investor who still wants banking exposure, his shortlist is short: SBI and ICICI Bank, bought very gradually in a SIP-like structure. HDFC Bank, notably, does not make the cut right now — he prefers ICICI’s performance profile at this stage.
Smaller PSU banks and NBFCs? Not yet. Bajaj Finance and Shriram Finance look oversold and will eventually present a good entry point, but he says the time has not come. Gold loan companies like Muthoot Finance and Manappuram Finance are on his watchlist, but again — he is waiting for stabilisation before recommending accumulation.
Aluminium is the real trade right now
This is where Bandyopadhyay gets notably more confident. Around 10% of global aluminium supply comes from West Asia, and the ongoing conflict has disrupted refineries, shut down production, and fractured supply chains. A demand-supply gap that already existed is now getting worse.
His top picks in this space are Nalco and Vedanta. Hindalco would normally be on that list too, but a fire at its US operations has made him cautious about that name specifically. He sees aluminium as a steady, stable trade for the next couple of years — not a short-term punt.
More broadly, he believes a secular bull run in metals was already underway before the geopolitical disturbances began, and that thesis remains intact. He also flags Mishra Dhatu Nigam and GMDC as names worth watching, along with rare earth companies that are positioned to benefit from sustained global demand.
On IT: A short-term tailwind, not a long-term story
Indian IT companies will get a near-term earnings boost from the sharp depreciation of the rupee — most frontline names derive more than 50% of their revenue from the US, and some earn up to 70% from global markets. That currency benefit will show up clearly in Q4 numbers.
But Bandyopadhyay is clear-eyed about what this is: a short-term blip, not a structural advantage. The real test for Indian IT is how fast these companies can evolve in an AI-driven world.
Defence: Bright future, stretched valuations — except L&T
Defence as a sector has a strong long-term story, but Bandyopadhyay finds most pure-play defence valuations still stretched even after the recent correction. His smarter play: companies with significant defence businesses where the overall valuation has become attractive. Larsen & Toubro is his headline pick — despite its West Asia exposure, he calls it a very good bet at current levels for aggressive investors. Bharat Forge is another name he likes for its rapidly growing defence vertical.
The summary of his advice across every sector is the same: the opportunity is real, but patience and position-sizing will separate the investors who come out ahead from those who don’t.