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Markets will swing, but these 3 sectors are still a Buy, says top fund manager
- 30 May 2025
- JM Financial Services
The equity markets react to every move in the bond market and based on the circumstances where there has been Moody’s downgrade on US securities, hence it’s time to be cautious in the US markets, said Ashish Chaturmohta of JM Financial.
“We continue to remain bullish on defence, financials, and select PSU names,” said Ashish Chaturmohta, Managing Director and Fund Manager, PMS at JM Financial, in an interview with Moneycontrol.
According to him, the defence sector is witnessing strong tailwinds, especially after India demonstrated its capability to produce indigenous defence equipment amid heightened India-Pakistan tensions.
“The RBI’s liquidity push and rate cuts will support loan growth and provide greater flexibility for financials,” he noted. “Additionally, several PSU companies have delivered impressive earnings in Q4FY25.”
Chaturmohta believes that calendar year 2025 will be marked by volatility, as the world realigns its trade policies amid elevated US bond yields, which continue to act as a balancing force across markets.
Do you believe the Indian equity markets will continue to face an uncertain geopolitical environment for the remainder of 2025?
Indian markets have corrected in recent months due to a combination of micro and macro factors. On the micro side, tighter monetary policy by the RBI, lower government capital expenditure, and subdued private consumption contributed to the slowdown. Macro concerns such as tariff uncertainties, India-Pakistan tensions, and global supply chain disruptions also weighed on sentiment.
That said, many of the micro challenges now appear to be easing. We’re seeing interest rate cuts, increased liquidity from the RBI, and a renewed push in government capex. Calendar year 2025 is likely to be marked by significant market swings, as the global trade order continues to realign and elevated US bond yields exert influence across economies.
While the macro headwinds persist, foreign inflows will remain a key driver. If they stay supportive, we could well see the Nifty scale new highs in the months ahead.
Source :- Moneycontrol