Harsha Upadhyaya advises bottom-up stock selection amid steady market fundamentals

As the second-quarter earnings season nears its end, results have mostly met muted expectations. Speaking to ET Now, Harsha Upadhyaya, CIO, Kotak Mahindra AMC shared his views on corporate performance and India’s economic outlook.

Earnings Season in Perspective
“We are at the fag end of the earning season. Results are largely in line with expectations, and management commentary is turning positive. GST changes and a good monsoon should aid demand recovery, and earnings are expected to improve well into FY27,” Upadhyaya said.


Consumption and Capex on the Radar
ET Now asked about the government’s push for consumption and capital expenditure.

Upadhyaya replied, “Capex for the first five months grew 45% year-on-year, but full-year growth may be in low double digits. For consumption, the GST rejig has reduced prices in many categories by 8-10%, boosting affordability. Coupled with a strong monsoon, this should gradually support consumption recovery.”

Selectivity in Industrial Investments
On industrial companies, he noted, “The industrial space requires selectivity. Deliveries aren’t linear, and valuations are already fair or slightly high. We now take a bottom-up approach, focusing on businesses with solid growth and valuations, rather than the entire segment.”

Bottom Line
With earnings stabilizing, capex showing steady growth, and consumption gradually improving, India’s market fundamentals appear solid. Experts like Upadhyaya recommend a selective, long-term approach to sectors such as industrials, emphasizing valuation discipline and targeted investments.