In opposition to this backdrop, Raychaudhuri emphasised specializing in home progress alternatives quite than export-oriented sectors. He mentioned he would keep away from leaping into exporters and as an alternative search for areas the place progress aligns with affordable valuations, highlighting fundamental supplies, choose industrials, and shopper discretionary segments as pockets of alternative — whereas stressing the necessity to stay selective. Shares akin to Tata Metal, Hindustan Zinc, and Larsen & Toubro mirror the home cyclical themes he prefers.
He flagged shopper staples and IT providers as areas of warning, arguing that staples endure from low progress regardless of elevated valuations and that IT faces pricing strain as synthetic intelligence modifications how shoppers consider contracts, probably compressing margins. Based on him, IT shares might solely turn out to be engaging at valuations nearer to 10–12 occasions earnings, implying both draw back or a protracted interval of sideways efficiency.
Whereas acknowledging that some know-how corporations may stand out, he mentioned firms demonstrating a transparent capacity to reinvent themselves — together with by partnerships akin to Infosys’ collaboration with AI gamers — might turn out to be extra fascinating over time, although he would anticipate clearer proof in progress or margin tendencies earlier than allocating capital.
On overseas flows, Raychaudhuri famous that international buyers at present have compelling alternate options throughout Asia the place earnings progress is stronger and valuations are decrease, suggesting that till this hole narrows, it might be tough for India to see a sustained return of overseas institutional shopping for.
