Auto, PSU banks, and defence stocks in focus, says expert

Investor sentiment in India’s equity market remains upbeat, supported by steady earnings and renewed IPO activity, according to Mayuresh Joshi, Head of Equity Research at William O’Neil and Company. He noted that while expectations are high, understanding how a company operates remains crucial before investing. “Many recent IPOs benefit from digital tailwinds and improving operational efficiency,” he said, adding that reasonably priced valuations create scope for investor gains. However, Joshi warned that the recent surge in IPO subscriptions is partly driven by FOMO — the fear of missing out — as several investors feel they missed earlier opportunities.

On sector trends, Joshi expressed optimism about the auto market, highlighting Maruti Suzuki’s strong performance despite rising competition. “We expect healthy demand to continue over the next two quarters,” he said.

He also remains positive about PSU banks, citing consistent performance over the past three quarters. “We particularly like Bank of Maharashtra,” he added.

Talking about technology, Joshi shared he has been actively exploring generative AI tools to improve workflow and efficiency. “AI tools are fantastic, especially for those who are digitally adaptive,” he said.

Among upcoming listings, he believes both the Lenskart and Studds IPOs could offer value, while defence stocks also deserve a place in investors’ portfolios.

(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)