Stocks to Buy | Top Sectoral Bets: Jewellery, Hospitals, Defence & More in Focus

Alok Agarwal from Alchemy Capital, in an interview with ET Now, said that the IT sector is currently facing several headwinds. Growth has been modest over the past 5–10 years, and the rise of artificial intelligence has added further concerns around future growth and margins. Moreover, the US – a key market for Indian IT – is itself experiencing uncertainties, making the outlook even more clouded. While some individual IT players might still perform well due to unique strengths, the overall sector lacks the momentum needed to propel it meaningfully forward.

The pharma space presents a more nuanced picture. Alok highlights that the sector includes several sub-segments: generic pharma companies that sell in the US, CDMO (Contract Development and Manufacturing Organization) players, domestic pharma firms, and hospital businesses. Among these, Alchemy Capital is particularly constructive on CDMO companies and very positive on domestic hospital chains. These segments are growing well and offer better visibility, which underpins their favourable outlook.

Instead of focusing on whether to invest with or outside of benchmarks, Alok explains that Alchemy follows the GARP philosophy—Growth At a Reasonable Price. Their primary filter is companies growing faster than the nominal GDP and corporate earnings, which are currently around 11–14%. A key tool they use is the PEG ratio, which helps assess whether the growth being paid for is justified. Often, strong growth is found in sectors that aren’t heavily weighted in benchmarks, which naturally draws attention to opportunities outside the index.

Alok emphasises that India remains a structural growth story, and trying to time the market usually proves futile. He recalls how the market rebounded sharply after the five-month correction from September to February—a move few could have predicted. Quoting Charlie Munger, he reinforces the idea that big money is made not by trading frequently but by staying invested. Investors should focus on quality stocks or the right mutual funds and remain invested through market cycles.

Alok emphasises that India remains a structural growth story, and trying to time the market usually proves futile. He recalls how the market rebounded sharply after the five-month correction from September to February—a move few could have predicted. Quoting Charlie Munger, he reinforces the idea that big money is made not by trading frequently but by staying invested. Investors should focus on quality stocks or the right mutual funds and remain invested through market cycles.