As Indian equity markets reacted to hopes of a Middle East peace dividend, portfolio manager Nilesh Shetty of Quantum Advisors urged investors to look past the rally. With El Niño risks, possible IT job losses, and unabsorbed cost increases weighing on corporate margins, Shetty believes a negative earnings surprise is possible over the next three to six months — and that current valuations have already run ahead of fundamentals.
Despite the macro caution, Shetty is finding value in specific pockets. Here's how he is positioned across key sectors.
"There is a negative surprise on earnings possible over the next three to six months, and valuations perhaps have moved a bit ahead of that," says Shetty.
