“We’ve had more than a year of consolidation. But with strong liquidity, tax incentives, and a solid monsoon, earnings will pick up from here,” Kela said confidently.
Gold, silver shine but equities remain unbeatable
While investors in gold and silver may be smiling this year, Kela believes their run is cyclical — not structural.
“Gold rallies aren’t based on fundamentals. In equities, when I buy a good company, earnings can grow two, four, or even eight times. In the long run, that’s real wealth creation,” he said. Kela emphasized a portfolio approach, where gold plays a small balancing role — but conviction in equities should never fade.
2027 earnings look far better than 2025; markets will re-rate
Kela expects the earnings cycle to strengthen over the next two quarters, driven by the government’s policy push and RBI’s easing stance.“From the Budget’s Rs 1 lakh crore tax incentives to liquidity support and a 100-basis-point rate cut — the groundwork has been laid. The market isn’t as expensive as it looked in 2025. 2027 earnings could surprise positively,” he noted.Kela said: “We’ll see markets turning constructive again — but returns will depend on what you buy, not just that markets rise.”
AI and power could be the next big wealth creators
Kela highlighted two emerging structural opportunities — AI-linked companies and the power sector.
“AI is transforming productivity everywhere — even in my own office. Companies that leverage AI without passing on cost benefits immediately will be big winners,” he said.
He added that power consumption could surge due to AI and digital infrastructure growth. “If power costs structurally fall 50% over the next few years, the real winners will be companies benefiting from lower energy costs,” he explained.
Kela’s advice: look beyond the obvious — identify futuristic themes and niche players that can deliver “extraordinary returns.”
NBFCs and housing finance: steady, selective bets
While consumption plays like autos and FMCG may look fully valued, Kela believes NBFCs — especially housing finance-focused ones — still offer room for growth.“We’ve been positive on NBFCs for over a year. Selectively, they’ve done well. The opportunity is still there, but you have to be choosy,” he said.
He also noted a shift in the consumption landscape, where smaller, regional brands are thriving due to easier access to capital and SME listings.
Manufacturing and pharma: still long-term stories
Kela remains bullish on India’s manufacturing revival, powered by PLI schemes, tariff protection, and local incentives.
“The government’s push to indigenize is real — from solar cells to electronics. But now, it’s about being selective. You need to identify niche manufacturers and visionary entrepreneurs with scalable plans,” he said. He added that pharma and specialty manufacturing remain multi-year opportunities — though easy, broad-based gains are behind us.
The real story: India’s SME revolution
What excites Kela the most is the surge in SME entrepreneurship across tier-II and tier-III cities.
“In the last four years, over 1,000 companies have listed on the SME exchange. Some of these will be future multi-baggers, run by entrepreneurs who now have access to ₹50–100 crore in capital,” he said.
He sees this as a “true bet on Indian entrepreneurship” — where small, innovative firms can grow into tomorrow’s large-caps.
“The next 5–10 years belong to these ambitious, regional entrepreneurs. You just need to find them early.”
Markets are turning; time to think long-term
Kela’s message for investors this Samvat: stay calm, stay invested, and think ahead. He said: “We’re entering a more constructive phase. The next move won’t be about the index — it’ll be about the right companies. Don’t chase momentum; chase value and innovation.”
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