Stocks to Buy | Dipan Mehta on why it is time to focus on fundamentals over market momentum
Dipan Mehtain an interview to ET Now said that the RBI’s unexpected move acted like a "googly" that markets welcomed, especially lenders. This positive sentiment could eventually spread to real estate, auto, and capital goods sectors. However, he cautions that the market is now consolidating and will need stronger earnings support to move higher.
According toDipan Mehta, while the markets are fairly to slightly expensively valued, the next leg of the rally will depend on robust corporate earnings. He points to tax cuts, a better monsoon, and improved lending conditions as catalysts—but until earnings visibly improve, markets may remain sideways, requiring selective stock picking.
Dipan Mehta highlights the 9th July deadline as a major overhang due to potential Trump tariffs. He notes that until this uncertainty is resolved, markets globally—including India—will likely stay range-bound. A negative outcome could drag equities down, while a positive resolution may trigger a rally, but with increasing selectivity.
Dipan Mehta expresses growing concern over Maruti Suzuki’s lack of an aggressive EV strategy and declining product freshness. He notes that while short-term rare earth supply issues may impact EVs, the deeper worry is Maruti’s loss of market share. In contrast, Dipan prefers M&M and Eicher Motors for their solid volume performance and product momentum.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
