Global risk-off sentiment keeping Indian markets in sluggish mode: Dharmesh Kant

AgenciesTurning to the quick-service restaurant (QSR) sector, Kant noted the challenges some players faced. Indian markets are showing signs of cautious trading as global risk-off sentiment, led by corrections in US equities, trickles down to Bitcoin and even precious metals. Investors are closely watching corporate earnings and sectoral developments for fresh triggers to sustain momentum in the domestic bourse.In an interview with ET Now, market strategist Dharmesh Kant from Cholamandalam Securities said, “It is more of a trading kind of sluggishness in the market. Q2 earnings were slightly better than expected. Even if you remove Tata Motors, Nifty 50 gave around 10% earnings growth, which was encouraging.”He added that markets have ranged between 25,000 to 26,000 and a fresh trigger could come from trade tariff settlements with the US or Q3 earnings and budget expectations in January. “Anything expensive, trading at a PE of 60-80 with 20-25% growth, is seeing heavy churning. You need to be lucky to get your trading bets right.”For longer-term investment, Kant sees promise in BFSI, defence, and selective infrastructure sectors. “BFSI remains a tried and tested sector, defence is attractive, and some infra plays also have scope for continued traction in the next couple of months.”Turning to the quick-service restaurant (QSR) sector, Kant noted the challenges some players faced. “Devyani, Sapphire, Westlife went into store expansion and struggled to capitalize on same-store growth. Jubilant Food, with its takeaway and delivery model, gained an edge. The IRCTC tie-up is positive for margins and commissions. Short- and medium-term, trading benefits are likely, but our top pick remains Jubilant Food.”Live EventsAsked about surprising commentary in the latest earnings season, Kant said, “There were no major surprises. Commentary was muted but cautiously optimistic. Renewable energy plays, like IPPs and solar module makers, will continue to get a good run, though valuations remain a concern.”Highlighting key sectors, he emphasized BFSI and defence as strong performers. “BFSI was encouraging, asset quality is strong except for Bajaj Finance. Axis Bank is our top pick. With the CRR cut on November 29, banks will have some margin relief. Reliance Industries’ retail division did well and could be a rerating candidate. Defence players like BDL, HAL, and BEL are performing strongly. In pharma, Lupin, Zydus, and Torrent Pharma are showing good traction.”With earnings providing a mixed but broadly positive backdrop, Indian investors are advised to remain selective, focusing on sectors with sustainable growth and attractive valuations, while keeping an eye on global developments that could act as triggers for market momentum.Add as a Reliable and Trusted News Source Add Now! (You can now subscribe to our ETMarkets WhatsApp channel) Read More News onhaljubilant foodIndian marketscorporate earningsDharmesh KantBFSI sectortata motorsirctcaxis bank (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price...moreless (You can now subscribe to our ETMarkets WhatsApp channel)Read More News onhaljubilant foodIndian marketscorporate earningsDharmesh KantBFSI sectortata motorsirctcaxis bank(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price...moreless Prime ExclusivesInvestment IdeasStock Report PlusePaperWealth Edition123View all Stories