Stories
Quant Founder Sandeep Tandon Predicts Market Pullback and Bullish Optical Fibre Outlook
- •Sandeep Tandon expects a market pullback rally due to excessive bearish sentiment in the Indian market.
- •Quant is bullish on optical fibre companies as a 3-5-year opportunity driven by global shortages and the AI theme.
- •The fund remains cautious on capital-market stocks and expensive valuations despite long-term potential.
- •Over-ownership is highlighted as a key risk, citing the heavily owned banking sector as an example.
- •Quant stays selective on IPOs and is monitoring leadership changes at HDFC Bank over the next 3-6 months.
Key Questions Answered
Quant Mutual Fund Founder and CIO Sandeep Tandon expects a pullback rally in the Indian market due to excessive bearish sentiment. He is also bullish on optical fibre companies, viewing them as a three-to-five-year opportunity to play the artificial intelligence theme amid a global shortage.
Quant remains cautious on capital-market-centric companies because none of them are currently cheap, despite an increase in exchange volumes and shrinking option volumes in recent quarters. Furthermore, regulatory changes and high ownership levels make the firm prefer waiting for more attractive valuations.
Goldman Sachs reports that optical networking is emerging as a major AI infrastructure trend to handle faster data exchange and low latency. The total addressable market for scale-up and scale-out networking is projected to expand nearly nine times, reaching USD 154 billion by 2028 from about USD 15 billion in 2026.
