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Indian Markets Face Year-Long Consolidation; Large-Cap Valuations Reasonable: Bandhan AMC
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CNBC TV18•25-09-2026, 16:08
Indian Markets Face Year-Long Consolidation; Large-Cap Valuations Reasonable: Bandhan AMC
- •Indian markets may consolidate for up to a year, but current large-cap valuations are reasonable for medium to long-term investors, according to Karthik Kumar of Bandhan AMC.
- •Three factors weighing on the market include higher crude prices, rising US yields, and a strengthening dollar, leading to a reduction in risk appetite.
- •Bandhan AMC's quantitative strategies favor banks in both large-cap and mid-cap segments but avoid insurance stocks due to regulatory uncertainty.
- •Capital markets remain a secular theme for Bandhan AMC, with bullishness on main names benefiting from increasing penetration, despite cyclical movements.
- •The AMC is selective in IPO participation and has exposure to UPI-linked stocks, noting their consolidation after regulatory changes and broader market weakness.
Key Questions Answered
According to Karthik Kumar, Senior Vice President at Bandhan AMC, the market is being weighed down by three main factors: higher crude prices sustaining at elevated levels, rising US yields, and a strengthening dollar index.
Bandhan AMC has stayed away from insurance companies due to uncertainty surrounding regulations and earnings visibility. Conversely, the fund house views capital markets as a secular theme and remains bullish on major names in that space while carefully monitoring their cycles.
Karthik Kumar serves as the Senior Vice President – Equity at Bandhan AMC, where he oversees systematic investment strategies, including Specialized Investment Funds, quantitative, passive, and arbitrage offerings.
