The Core Report #741 Market Highs Slip Away
Dec 2, 2025
Anindya Banerjee, Head of Research at Kotak Securities, dives into the intricacies of the rupee's current lows and explains the impact of non-deliverable forwards. Alongside him, G. Chokkalingam, founder of Equinomics Research, shares insights on historical market peaks, forecasting a consolidation in Sensex and Nifty, and sectors like IT and solar poised for growth. Together, they unravel the challenges and dynamics surrounding Indian markets and currencies, providing listeners with a valuable perspective on upcoming trends.
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Perception-Driven PE Expansion Triggers Corrections
- Market peaks are followed by corrections every three to five years, but predicting the exact peak is very difficult.
- Excess perception-driven PE expansion across many stocks often causes the correction when peaks arrive.
Protect Portfolios From Small/Mid-Cap Pain
- Do prepare for a quick consolidation in Sensex/Nifty supported by mutual funds and insurance flows.
- Avoid broad small- and mid-cap exposure and be selective, as many names may keep falling for months.
Rotate Into Real Growth Sectors
- Do focus on sectoral rotation and chase sectors showing relative growth, not index inertia.
- Identify themes with real revenue growth rather than hype-driven valuation spikes.