Stock-specific approach may outperform in volatile markets

追加: 2026-05-31

[00:00:00]See the current volatility is uh basically indicating a tug of war between u like you know the global risk aversion and uh strong domestic liquidity. So if you see that the uh fi is largely exiting due to the AI related uh capital relocation rising US bond yield uh yields and elevated crude oil prices uh macro headwinds that we are seeing on the uh global front. So uh that has led to roughly around uh 2.2 lakh crores of outflows in India uh so far in 2026. So uh at the same time you know if you see the domestic uh are definitely holding strong footing uh with roughly around 30,000 crores plus of SIP inflows uh which is helping the market at large and we believe that short-term volatility might continue considering that geopolitical challenges are still there. So that may continue to keep the crude currency uh all these factors uh you know on the elevated side but uh largely we anticipate that the uh the prominence of diis through the domestic flows is likely to stabilize the market in the long run. So it's going to be a healthy market uh is what structurally what we see. So basically the current uh market correction is uh a mix of basically uh the reasons uh like you know it's valuationled liquidity driven and more influenced by the uh geopolitical factors also considering that it all started with uh the geopolitical scenario by the way it means the Middle East crisis triggered the sharp uptick in crude oil prices at the same time the uh US bond yields have like you know rising and we are seeing the currency depreciation also going on. So all these factors triggered this risk aversion. So that is one part. Other is uh the liquidity challenges. So it's automatically there cuz uh uh when we see this kind of scenario unfolding that the rates interest rates remain at the elevated level for longer period. uh that also uh like you know uh creates this kind of atmosphere that uh you know participants prefer to book some profits off the table uh you know in the uncertain market scenario and lastly the valuation led by because uh there were certain pockets from the especially from the midcap and small cap large cap they have returned to their historical uh averages you know at large but midcap small cap the valuations were frothy and uh after this correction we are seeing that certain segments with the earning catchup are still holding strong but uh at large we may continue to see this kind of uh valuation correction continuing. So in the near term uh we anticipate that the volatile swings might continue in the index but that is not the right way to see the markets at large because if you see that there are certain pockets uh especially the uh some of these defensive uh names from the pharma healthcare basket and uh then we have energy uh auto select uh you know metal counters they all are holding strong and in fact the midcap index has made an recent uh you know record high recent recently. So amid this uh consolidation or correction in the index the approach should be more of uh stock picking bases the sectoral performance. So that is one uh aspect that one should be focusing on uh especially with the view of short-term