Chandraprakash Padiyar, Senior Fund Manager at Tata Mutual Fund, believes the market is favorable for bottom-up stock selection across market capitalizations. He sees strong investment opportunities in small-cap, mid-cap, and large-cap segments. Padiyar anticipates that earnings growth for corporate India will likely surpass FY26 levels. He remains optimistic that FY27 could be better than FY26, stating that valuations in select market pockets have become more reasonable.
Padiyar asserts that an early resolution of the Iran conflict will not significantly impact FY27 earnings. However, he warns that prolonged conflict could challenge global growth, potentially affecting FY27 earnings estimates. He emphasizes the importance of bottom-up stock selection and advises higher allocation towards diversified equity funds, including Flexicap, Large & Mid Cap, and Multicap categories.
Padiyar also highlights the need for innovative solutions to support the SME/MSME segment amid rising energy prices and the long-term trend towards reducing dependence on oil imports.
