Nischal Maheshwari on Infosys buyback, auto festive push, defence pause & realty risks

With Infosys announcing its share buyback at a slightly lower price than expected, investors are wondering about the sentiment around IT stocks. Market expert Nischal Maheshwari believes the move will still be a net positive for the sector.

“Infosys’ buyback is the start. At least two more companies, TCS and Wipro, are eligible and may also announce buybacks. Distributing cash from the balance sheet improves return ratios like ROE and ROCE, while also putting money in investors’ hands. I don’t see much downside for IT companies from here,” Maheshwari told ET Now.

In the auto sector, Maheshwari struck an optimistic note, especially for the next two to three months. “The rate cut, festive season, and inventory clearance will support strong numbers. For this quarter, I would prefer OEMs, particularly two-wheelers, over four-wheelers.


Inventories in two-wheelers are lower, and rural demand is strong — making them a better play than four-wheelers,” he explained. He advised focusing on OEMs first, then shifting to auto ancillaries, while avoiding auto financiers for now.

The defence pack, which has been a strong performer with BEL, HAL, and Mazagon Dock rallying, requires caution at current levels, Maheshwari warned. “Defence is a long-runway story, but most of the visibility for the next two years is already priced in. HAL has a ₹2 lakh crore order book, Mazagon Dock and Cochin Shipyard each ₹50,000–70,000 crore. But execution capacity limits short-term upside. Any fresh order of ₹5,000–10,000 crore won’t move the needle immediately. Investors should wait for a correction before adding defence stocks,” he said.

In oil and gas, Maheshwari highlighted value opportunities. “Both upstream and downstream companies offer value. Oil looks close to its bottom, and if the global economy revives, Oil India and ONGC could do better. On the downstream side, OMCs remain value plays. GAIL’s move to list its subsidiaries is also a smart step in unlocking value,” he added.

On real estate, he flagged risks despite ongoing diversification into data centres. “In major markets like Mumbai, Delhi, and Bengaluru, prices look close to peaking. Job losses, especially in IT, could put pressure on demand. Developers are diversifying, but we still need clarity on investment returns from new ventures like data centres,” Maheshwari observed.

Overall, Maheshwari is constructive on IT and auto OEMs, cautious on defence and realty, and selectively positive on oil and gas.