Fewer Bargain Opportunities, Bottoms Up Approach Needed :

Bargain opportunities in Indian equities are currently scarce. Few sectors are offering attractive entry points, and most of the areas that led the post-COVID bull run such as Capital Goods, Consumer Durables etc. now appear fully priced with limited margin of safety.

Among major sectors, Financial Services and Information Technology continue to offer select opportunities, while the rest of the market appears expensive on both absolute and relative valuation metrics.

Given the prevailing earnings trajectory and ROE profiles, the broader market still looks stretched from a value standpoint. However, selective opportunities can be found in Financial Services and IT segments. In this environment, a bottom-up stock-picking approach focusing on company-specific fundamentals rather than broad sector calls may be the key to uncovering genuine value.