Anshul Saigal sees tailwinds for consumption, defence and renewables forward of festive season

Markets are shifting into an fascinating part, with valuations turning extra affordable and earnings expectations set to enhance, in line with Anshul Saigal. In an unique dialog with ET Now, Saigal, Founder, Saigal Capital highlighted how the macro setup, regulatory adjustments, and sectoral shifts are creating alternatives for buyers.

Reflecting on the present setup, he stated: “Final yr’s broad-based rally arrange the present consolidation. Markets have moved in a slim vary, with just a few shares doing properly. Earnings will now drive route, and with the festive season forward, we count on a turnaround. Macros are stabilising, valuations are affordable, and general the setup appears to be like constructive.”

Consumption, Defence and Renewables in Focus

When requested about themes he’s betting on, Saigal pointed in direction of discretionary consumption. “With tax cuts and liquidity help, discretionary consumption ought to revive this festive season. Commentary from corporations in cables, wires, and electrical items is already constructive,” he defined.

Past consumption, he’s bullish on different sectors. “Defence and renewables have important tailwinds with authorities push and enormous alternatives forward. Banking, finance, and capital items are additionally enticing, although alternatives will likely be stock-specific,” he added.

NBFCs Poised for a Revival

On non-banking lenders, Saigal famous a good regulatory shift. “Three to 4 years in the past, RBI was tightening norms, however within the final yr it has eased restrictions. This reveals recognition that NBFCs lend the place banks can’t. With festive demand, auto, client durables, and housing finance ought to see progress. NBFCs look set for each AUM and profitability tailwinds,” he stated.

Defence and Renewables: Inventory-Particular Bets

Pressed on inventory concepts, Saigal prevented names however gave insights. “I met a renewable EPC firm that plans to double revenues this yr and once more subsequent yr, increasing into inexperienced hydrogen and different areas. Valuations don’t but mirror the upside. In defence, a lot of the upside has performed out, however choose alternatives nonetheless exist, particularly in corporations with hidden strengths,” he defined.