He said, “We are seeing huge interest in cement, because cement this year is going to post more than 50% earnings growth. Prices are stabilising. The government has kick-started the capex. They have front-loaded the capex in the first quarter. So that sector is seeing good demand.”
He highlighted that corporate earnings will be the defining themes for India’s equity markets in the near term.
According to him, earnings remain the single most important driver of markets. “When earnings were solid, between 2020 and 2024, with a compounding of 20% plus, we saw the market take off. And then in FY25, when earnings were flat, we saw the market get zero returns,” Duggad observed.
He added, “Everything else falls by the wayside once earnings come back, and if earnings are not there and everything else is rosy, market still won’t respond.”
According to Duggad, auto has seen a sharp turnaround in sentiment. The sector has moved from underweight to marginally overweight in Motilal Oswal’s coverage, buoyed by the potential GST rate cut, rising rural demand, and the upcoming festive season.
Duggad noted that autos have already outperformed the market this year, overtaking banking as the top sectoral performer.
In consumption, Duggad pointed to a revival in low-ticket goods, jewellery, hospitality, and quick-service restaurants/food delivery.
The hospitality sector, in particular, remains undersupplied by 2–3% annually, sustaining strong demand despite prior years of performance.
On technology, Duggad stressed the shift towards new-age tech and midcap IT companies. He noted, “If you are evaluating the sector with the past lens, the possibility of you missing out on the new age or emerging trend is quite high,”
He noted that in the technology sector, it is crucial to focus on companies growing at least 15%, as the period when 5–10% growth attracted significant valuation premiums is now over.
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