‘Markets likely to be bottom-up, stock-specific’: Shiv Chanani on FY26 Outlook

Shiv Chanani of Baroda BNP Paribas MF shared a measured outlook for the equity markets in a conversation with ETNow.

He emphasized that while aggregate valuations have become more reasonable, the market is expected to stay selective and bottom-up in nature.

“It is a bit of a contrast right now where we are seeing a bit of operating environment which is uncertain,” Chanani said, noting that factors like the upcoming 'Liberation Day' and global tariff tensions are contributing to the caution.

He added, “Aggregate valuations are always a little tricky because at the end of the day it is a sum of a lot of things.”

According to Chanani, the current environment calls for a stock-specific approach, particularly focused on companies with strong near-term earnings visibility. “Markets are likely to be a lot more bottom-up, stock-specific market, where companies which have a better near-term earnings visibility are likely to do better,” he said.

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On sectors, Chanani stated that while this phase may not be sector-specific, certain themes stand out. “Overall at this point of time we are a lot more constructive on the consumption as a space… that should help a lot of discretionary consumption,” he noted. He also mentioned pharma and healthcare, especially the domestic segment, and select capital goods and power utilities as areas expected to show decent earnings growth.

Within discretionary consumption, Chanani highlighted the potential in consumer durables, supported by recent tax breaks. “Those kind of tax