Shiv Chanani’s Stock Market Insights Amid Global Uncertainty

As the new financial year begins, there’s some worry in the world about trade risks and market conditions. Shiv Chanani from Baroda BNP Paribas Mutual Fund shared his thoughts on what’s happening in the stock market when he talked to ETNow. He said that while overall market prices seem more reasonable now, investors need to be careful and focus on individual companies.

“Right now, the business environment feels a bit shaky,” Chanani said. Events like ‘Liberation Day’ and trade tensions around the world are making investors cautious. He added, “Looking at average prices can be misleading because they depend on many things.”

Chanani believes it’s important to look closely at specific companies, especially those that are expected to earn well in the near future. “The market will be more about picking stocks than following sectors, so companies with clearer earnings are likely to perform better,” he explained.

When it comes to sectors, Chanani mentioned that, although no specific sector stands out, some themes are emerging. “We feel positive about the consumption sector right now, as it may boost spending on non-essential items,” he said. He also noted the potential for growth in pharma and healthcare, especially in local companies, as well as some capital goods and power utilities.

In the area of consumer spending, Chanani highlighted consumer durables, particularly with recent tax breaks. “These tax benefits are helpful for smaller purchase items costing between 20,000 to 40,000,” he added. He suggested that travel sectors, like airlines and hotels, which have been doing well, might continue to thrive.

On the other hand, Chanani cautioned about commodities. “There might be a slowdown in global growth, which usually affects commodities the most,” he mentioned.

Regarding tariffs, Chanani advised considering the bigger picture. “It’s not just about tariffs in India; it’s about competition. If India is better positioned than China due to tariffs, Indian auto companies could actually gain from this,” he commented.

Disclaimer: The views shared by the experts are their own and do not represent The Economic Times.