Niraj Kumar, CIO of Future Generali India Life Insurance, provides insights on navigating the volatile stock market in 2025. He emphasizes capitalizing on opportunities to acquire quality businesses at favorable valuations amidst global uncertainties.
Kumar highlights India's resilience due to strong domestic fundamentals and retail participation. He also notes the easing interest rate cycle as a positive factor. He advises investors to remain agile and focus on quality businesses with earnings visibility for long-term investment.
Despite geopolitical tensions and global cues, Kumar observes a mature response from Indian investors. He suggests focusing on domestic-facing sectors like BFSI, Power, and Telecom. Future Generali views volatility as an opportunity to add good businesses at reasonable valuations and has begun evaluating the IT sector following recent corrections.
Kumar anticipates earnings recovery in FY26 due to factors like a rebound in government capital expenditure and a favorable monsoon. He also notes that the mid-cap and small-cap space has seen a significant correction, making valuations more attractive, advising a bottom-up evaluation.
Kumar believes the worst of FII selling is likely behind, citing India's strong macro fundamentals and domestic demand as positives. He notes that domestic institutions and retail participation offer a cushion against foreign flow volatility.