With 2025 expected to be a “tougher year” for the Indian markets, Complete Circle Managing Partner and Chief Investment Officer Gurmeet Chadha has advised investors to be selective while picking up the stocks. 

In a conversation with NDTV Profit, Chadha acknowledged that 2025 is likely to be challenging.

“I made this point that 25 will be a tougher year. We are very used to a beta year where almost everything did well, and there was relative, obviously, outperformance and performance. When you have back-to-back three good years, valuations are at 21 times, and with earnings being weak, you have to be selective,” he said.

However, this is also a good time to get good bargains, the Chadha noted.

“At the same time, this is a period when there is a lot of negativity. This is when you get good bargains and good value,” he said.

Talking about where the support may come from, Chadha mentioned that the financial sector looks “oversold” to him.

“There’s a lot of negativity on asset quality. It started with microfinance. Now, brokerages are talking about auto and stress in commercial vehicle portfolios and gold loan disbursal. Disbursal is high, pointing to stress in consumption,” the Complete Circle CIO said.

“Maybe a staggered approach here would help,” he added. 

However, sectors like IT may see signs of positivity, according to the top analyst, who noted that companies like Accenture have raised their financial guidance.

“Similarly, I think IT might see some bit of help. Accenture has raised guidance. And if the US is going to revive, if that is the theory and there could be corporate tax cuts, the discretionary spend would go up,” he said.

Chadha emphasised that one needs to be “selective” while picking IT stocks too.

“There again, you have to be a little more selective. So this is a market where you want to select. It’s not just one theme that will do everything—where the entire pharma will do well, where the entire IT will do well. I think you want to be selective and figure out where the earnings support is,” he said.

He recommended “cherry-picking” stocks and seeing what might be good for holding for the long term.

. Read more on Markets by NDTV Profit.Complete Circle CIO Gurmeet Chadha predicts a tougher 2025 for Indian markets, highlighting the need for selective stock picking due to high valuations and weak earnings.  Read MoreMarkets, Notifications 

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