“The way the markets have been and the earnings season so far has been good and there is no disappointment in terms of where the markets can talk about,” Shah noted. “Most of the Nifty universe maybe there are no disappointments.”
He highlighted that large-cap companies, including IT majors, have met street expectations. Among the recent results, Shah pointed out L&T’s strong performance and said platform-based companies like Swiggy have delivered encouraging numbers.
“Swiggy could be one of the better bets going forward, and the recent little bit of price correction also augurs well in this rally,” he added.
Public sector banks, too, continued to impress with Canara Bank’s strong numbers drawing his attention.
FMCG: Mixed Bag but Rural Demand Picking Up
Discussing the consumption space, Shah observed a mixed trend among FMCG companies. While some reported muted growth, heavyweights such as Hindustan Unilever and Nestle delivered strong results.
“Growth was visible in both the segments — rural as well as urban,” Shah said. “Post the GST cut, rural demand should come up very strongly.”
Falling input prices have helped most FMCG players maintain their margins even as volume growth showed early signs of recovery.
Autos Gearing Up for a Festive Quarter
The auto sector is also looking upbeat with October sales figures expected to be robust. Shah believes strong passenger vehicle bookings post-Dussehra and Diwali will support momentum in the coming quarter.
“Passenger vehicles, specifically Hyundai and Maruti, look very strong… and in two-wheelers, Hero’s numbers should be encouraging,” he said.
Defence: Valuations Cooling, Opportunities Rising
The defence pack, which had been on a tear since the DAC announcements, is now entering a more attractive valuation zone, according to Shah.
“Most of the stocks have corrected between 10% to 15%. BEL remains our top pick with superior performance and strong order book,” he said.
He also mentioned Bharat Dynamics as another preferred bet in the space, adding that the sector as a whole should continue to deliver solid returns.
Real Estate: Lodha, DLF Keep Momentum Intact
Shah pointed out that the real estate sector continues to perform well after two strong years. Lodha’s numbers, he said, were particularly impressive, followed by DLF, Godrej Properties, and Prestige.
“There have been no disappointments. Lodha obviously is one of the preferred bets in the entire basket,” he said.
IPO Buzz: Lenskart for Listing Gains
On the highly anticipated Lenskart IPO, Shah maintained a balanced stance.
“For listing gains definitely one should get into the Lenskart IPO; for the long term, I would wait,” he said, adding that better-valued opportunities exist among listed peers.
He acknowledged the “fancy in the IPO market” over the past few months, with most new listings debuting at healthy premiums.
Top Stock Picks: SBI, JSW Steel, Coforge
When asked about his current buy calls, Shah identified three key areas of strength: banking, metals, and IT.
“PSU banks remain our top bets — State Bank is our top pick. From the metals, we like JSW Steel, and among IT, Coforge stands out post strong numbers,” he concluded.
Rahul Shah’s commentary paints a picture of an earnings-driven market with solid fundamentals across sectors. From robust auto sales and resilient FMCG demand to opportunities in defence and real estate, the undertone remains bullish. Investors, however, may need to tread selectively — chasing short-term listing gains in IPOs like Lenskart while focusing on long-term strength in PSU banks, metals, and midcap IT names.
