Parekh: Buy quality Nifty stocks, stay underweight IT
Get SkimNews daily
A curated daily digest across 7 categories: geopolitics, tech, finance, health, energy, sports, culture. Free.
- Sanjay H Parekh advises clients to "slowly and steadily start accumulating" quality Nifty stocks, saying valuations in many large-cap names look attractive over a 1-3 year horizon.
- Parekh's top Nifty sector picks are financials and telecom, with the largest integrated O2C conglomerate also looking attractive at current valuations.
- Parekh has been underweight on IT for nearly four years and is unwilling to reverse that, citing AI as a long-term headwind and prolonged global disruptions as a risk to global IT decision-making.
- Crude oil easing to $70-75 could make discretionary names like Maruti and Mahindra "big beneficiaries," per Parekh, if macro conditions stabilize.
- Parekh's core thesis is domestic overweight and global underweight for the last four years, with exposure concentrated in discretionary consumption, telecom, infrastructure, large banks, cement, non-ferrous metals, and domestic utilities.
- Parekh expects a meaningful Nifty rebound of 5-7% — not just 2-3% — once uncertainties begin to fade.
Why it matters: Parekh's four-year-old domestic overweight thesis — financial, telecom, infrastructure, large banks over IT and global exporters — gives investors a specific positioning blueprint rather than a generic "buy the dip" call. His willingness to start accumulating now rather than wait for the exact bottom, combined with a 5-7% rebound target contingent on crude easing to $70-75, sets concrete triggers retail investors can act on.
