“Overall, the market is attempting to move higher and every stage that we see a pause only looks like a consolidation. Therefore, we are not really expecting much of a dip. The worst case scenario maybe a 100 or 200 point decline, but apart from that we should continue to head higher and essentially it is a buy on dips market is what I am trying to say,” Srivastava told ET Now.
He added that investors should focus on the “right parts” of the market, emphasising the need to move away from defensive sectors and position portfolios towards growth-oriented segments. “The focus has to be on the right parts of the market to be in which according to me means being less defensive and being more aggressive which means finding pockets of growth and investing there because that is where most of the performance has actually shown up over the last several months,” he noted.
When asked about sectoral strength in the current range-bound setup, Srivastava pointed to a few clear leaders. “There are three or four standout sectors when you study the last month or the last year and these are banking, metals, and mid and smallcaps, so broadly these are three which are completely holding out and outperforming the market over a period of time. So, this is where the maximum focus would be,” he said.
He further elaborated that within the mid and smallcap universe, certain sub-segments are showing strong momentum. “There are some stocks in the power area, there are some stocks in maybe even in mining, but broadly it is essentially growth. When you actually look in mid and smallcaps, you are looking for companies that are consistently able to grow 30-40% and that have good momentum on the charts when we are really studying price action,” Srivastava explained.
Highlighting recent market trends, he added, “Over the last month also the best performing sectors included most of the financials from PSU banks to private banks as well. We have even seen an uptick in realty in between and want to really see whether that can continue, but financials, metals and mid and smallcaps are the standout areas very clearly.”Despite near-term volatility, Srivastava’s analysis points to a constructive setup where dips remain buying opportunities — especially for investors aligned with growth-driven sectors.
