“These kind of knee-jerk reactions are temporary. It may last a week or two, but it is not a forever kind of situation,” Solanki told ET Now, pointing to HDFC Bank and ICICI Bank as two top-tier names that have fallen to “decent, comfortable valuations.”
What’s driving the selloff?
Solanki attributes the current market weakness squarely to escalating Middle East tensions. With the conflict stretching into its fourth or fifth day and showing little sign of a quick resolution, investors are pricing in risks that extend well beyond oil prices. Global manufacturing supply chains are under strain, and some industrial clusters have already reported a 50% reduction in gas supply — a concrete signal that the disruption is moving from geopolitical noise to economic reality.
ETMarkets.comFor Solanki, however, the Indian growth story remains structurally intact. “There is a lot of headroom for our economy to grow and a lot of themes running for the medium to long term,” he said. “Good stocks that weren’t available at reasonable valuations two or three quarters ago are now on offer.”
“It is a perfect entry time for long-term investors to get bargains on good stocks.”
Four themes worth buying now
Beyond banks, Solanki outlined four specific sector themes where Anand Rathi is actively recommending clients to build positions.
Power Transmission & Distribution (T&D) is Solanki’s preferred play within the energy space. Rather than betting on power generators, he favours companies exposed to High Voltage Direct Current (HVDC) infrastructure — a segment seeing surging investment as India races to evacuate electricity from expanding solar capacity and meet rising demand.
Consumer Durables get a strong seasonal endorsement. With temperatures already climbing and an El Niño-amplified summer expected to be both intense and prolonged, Solanki recommends stocking up on names like Blue Star, Havells, Orient Electric, Crompton Greaves, and Voltas. “We have been recommending clients to load up on these stocks,” he said.
Pharma offers a two-pronged play around an upcoming generic drug launch — set for March 21 in India and April in Canada. With six to eight Indian players — including Ajanta, Sun Pharma, Natco, Zydus, and Abbott — expected to launch on day one, price erosion will be the market’s first focus. Solanki is playing it through Emcure Pharmaceuticals on the drug side and Shaily Engineering and Plastics, which manufactures injector pens for both Indian companies and global clients.
Top pick for the calendar year: GRSE
When pressed for a single high-conviction call, Solanki did not hesitate: Garden Reach Shipbuilders & Engineers (GRSE) is Anand Rathi’s top pick for medium- to long-term investors, with a price target of ₹3,500.
ETMarkets.comGRSE’s appeal lies in its expanding order book and a strategic diversification into commercial shipping — a move Solanki says will meaningfully smooth out the execution lumps that can make pure-play defence stocks volatile. On valuation grounds too, he sees current levels as attractive for a patient investor.
The overarching message from Anand Rathi is one of disciplined optimism: use geopolitical volatility as a shopping window, stick to structurally strong themes, and keep a horizon of at least twelve months.