Deven Choksey in a conversation with Anil Singhvi bets on metals defence and these emerging sectors for strong FY26 gains

India’s equity markets are well poised for a strong run into FY26, supported by stable macros, robust earnings outlook, and sector-specific tailwinds, said market expert Deven Choksey in an exclusive conversation with Anil Singhvi on Zee Business’ Market Talk. The FinServ MD outlined key sectors and strategies investors should consider right now to capitalise on the emerging upcycle.

Sectors In Focus

Choksey highlighted that post-disruption global reconstruction activities typically create significant opportunities for emerging markets like India. He singled out the metals sector as a key beneficiary of this trend, expecting it to witness a sharp rise in demand due to global rebuilding efforts. “Metals could possibly be the first segment where we’ll experience stronger demand,” he said, implying potential upside for steel and non-ferrous companies.

What Boosts Margin?

With crude oil prices stabilising and imported inflation under control, India enjoys an optimal environment for industrial and manufacturing growth. According to Choksey, this leads to lower energy costs and controlled interest rates, boosting corporate profitability. “The margin factor, particularly for the industry, is showing a positive emergence,” he noted.

FY26 Earnings

Choksey projected that corporate earnings growth could top 15 per cent in FY25–26, aided by demand revival and margin stability. “Both demand and profitability are lining up, creating a strong base,” he said, adding that this sets the stage for increased investor participation in equities over the coming quarters.

Correction is a buying opportunity; long-term positions must be held

While acknowledging that valuations have become a bit expensive, Choksey reassured that any market correction should be viewed as a buying opportunity. “The near-term environment is conducive for equities,” he added.

He also advised retail investors to stay put with their long-term bets, particularly if they’re exposed to defence, real estate developers, and new emerging sectors such as clean energy, semiconductors, or digital infrastructure. “Don’t disturb your long-term investment positions too much,” he said, recommending that only 25–30 per cent of the portfolio be kept liquid for momentum trading.

Key sectors Deven Choksey Is Bullish On:

• Metals (due to global reconstruction)

• Defence (strong policy support and global demand)

• Emerging sectors like clean tech, real estate developers, and semiconductors

• Banks and industrials could benefit from India’s domestic capex cycle (implied context)

Choksey’s macro-driven yet focused view reiterates the bullish stance for India as it enters a new earnings cycle with stable fundamentals and a pro-growth global environment.