Business
ETMarkets Smart Talk | Power, infra, auto sectors look attractive after correction: Devang Mehta
While the uncertain macro environment has kept investors on edge, corrections across sectors have also opened up selective opportunities. In an interaction with ETMarkets Smart Talk, Devang Mehta, Deputy Managing Director & CIO – Equity NDPMS at Spark Capital Private Wealth, said that domestic-focused sectors such as power, infrastructure, and auto are beginning to look attractive after the recent market correction.
He also advised investors to stay disciplined, continue their SIPs, and focus on long-term investing rather than reacting to short-term volatility. Edited Excerpts –
Q) Thanks for taking the time out. March has been an absolute roller coaster for equity markets not just for India but across the globe. How are you reading into markets – more pain ahead?
A) The equity markets in March 2026 have indeed experienced extreme volatility, primarily driven by the escalation of a U.S.-Israel war with Iran and the subsequent closure of the Strait of Hormuz.
This conflict has triggered a “risk-off” environment, characterized by sharp declines in global indices and a surge in crude oil prices past $100–$110 per barrel and foreign outflows as well
The conflict has disrupted roughly 20% of global oil supplies transiting the Strait of Hormuz, raising fears that oil could be on the boil. If the war continues, the collateral and economic damage could lead to more pain.
Though its next to impossible to gauge the intensity and duration of the war, long term investors have to adjust to the volatility and uncertainty.
Indian market has now been going through price correction, valuation correction and time correction since last 19 months and data typically shows that after underperformance and with earnings cycle positively coming back, one needs to stay focused and not panic.
Q) IT sector seems to be the worst hit thanks to the AI commentary but with geopolitical tensions rising other sectors have also started to see some rub-off effect. Any sector(s) that are now available at attractive lev
A) IT has particularly been a hugely underperforming sector and it has its own reasons. But as markets were settling down in February, post a decent budget, good earnings season and a bit of clarity about US tariffs, unfortunately, the Iran & US – Israel war related news took prominence and had its impact on global and our own markets.
With all the newsflow around and India’s sensitivity for the oil and gas dependence, most of our sectors and companies in the indices and even broader markets went through a severe correction.
Sectors which are domestic centric and have not much of a global exposure should ideally be sought after in the first phase.
Capex oriented sectors like power, HVDC, engineering, capital goods, infrastructure and even discretionary consumption related sectors like auto and auto components have seen meaningful corrections.
Some accumulation here would be a good start to construction of new portfolios. Niche pharmaceuticals and wellness including hospital businesses and few BFSI related companies also qualify for long term investment.
Q) What could be the good, bad and ugly for Indian markets in the near term?
A) Good – Following a sluggish 2025, India Inc. is expected to see around15% YoY earnings rebound over FY26–FY27.
With India’s valuation premium over other emerging markets compressing, expectations are high for a return of foreign capital in 2026.
Strong SIP-led inflows and retail participation continue to cushion the market against foreign investor volatility.
Headline CPI inflation printed at a benign 2.75% in January 2026, though a new series makes historical comparison difficult.
Recent pro-growth measures, including income tax & GST rate cuts and interest rate reductions (125 bps cut to 5.25% as of early 2026), aim to stimulate consumption.
Bad – The Indian Rupee recently sank to all-time lows, breaching ₹92.35 against the US Dollar, which threatens to increase “imported inflation”. Pending trade deals with the US is also a overhang. Foreign Institutional Investors have been aggressive net sellers, offloading over ₹32,800 crore in the first week of March 2026 alone.
The Ugly – A major escalation in the Middle East, such as a shutdown of the Hormuz Strait, could push oil prices to unsustainable levels, causing a severe, sudden shock to the Indian economy. If global uncertainty prompts sustained record-breaking selling by foreign institutional investors, market multiples could face intense downward pressure.
Q) FPIs have been net sellers in 2025, and the story continues in 2026 may be for a different reason now. The story seems to be changing around the FDI route as India opens channels for Chinese investment to land into several industries. What are your views?
A) FPIs have been massive net sellers in India during 2025, driven by high valuation concerns, US tariff anxieties, and a “Sell India, Buy China” trend. The record outflows in 2025 were driven by a “risk-off” sentiment due to high Indian valuations compared to its peers, weak corporate earnings, and global macro headwinds like rising US bond yields.
As of early 2026, FPIs remain cautious. While they briefly turned net buyers in February 2026 following a US-India trade deal, this reversed in March due to escalating Middle East conflicts and a weakening rupee.
India has begun relaxing FDI norms for neighboring countries, including a 60-day fast-track approval for projects, to attract manufacturing investment. This represents a shift from the 2020 restrictions, allowing Chinese capital to enter critical industries.
This policy change aims to bridge the investment gap and boost local manufacturing, even as India manages a massive trade deficit with China. It highlights a strategic move to balance security concerns with economic growth necessities.
The most striking change is the relaxation of Press Note 3 (2020), which had virtually frozen Chinese investment since the Galwan clash. The story is changing from a broad “avoid China” stance to a calibrated, strategic engagement.
Stock markets have already started pricing this in, with Electronic Manufacturing Services (EMS) and renewable energy stocks surging on the news.
Q) Rupee seems to be hitting fresh lows every week – where do you see the currency headed and how will it impact Indian markets/economy?
A) The Indian Rupee (INR) has indeed been hitting fresh record lows against the US Dollar (USD), falling past the 92 level and touching around 92.35–92.37. This weakness is driven by a combination of high geopolitical tension, rising crude oil prices, and significant foreign capital outflows.
The rupee is expected to trade in a broad 90–93 range as long as geopolitical tensions in the Middle East persist and oil prices remain high.
As a major importer of crude oil, electronics, and machinery, a weaker rupee makes these inputs significantly costlier. This feeds directly into domestic inflation, raising costs for petrol, diesel, and electronics.
The cost of importing goods is outpacing export growth, widening the current account deficit (CAD). Indian companies with large unhedged foreign currency loans face higher repayment burdens, squeezing their margins.
Q) Will Crude@$100/bbl and above hurt Indian markets and macros? We have been making an investment pitch to the world about our macro stability which could be challenged in the near future. What are your views?
A) Crude oil prices sustained above $100/bbl pose significant risks to India’s macroeconomic stability by widening the current account deficit (CAD), increasing inflation (by 35–40 bps), and potentially reducing FY27 GDP growth to around 6%.
While this challenges the investment narrative of macro stability and threatens equity market pressure, strong foreign exchange reserves (around $720 billion) and potential for a shorter-duration shock may mitigate long-term damage.
With $720 billion in forex reserves and lower global demand, this shock may be acute rather than prolonged, preventing a structural break.
While a short-term spike causes volatility, a sustained, long-term trend above $100 requires a rebalancing of portfolios towards defensives. The “macro stability” pitch is challenged, but not entirely broken unless the conflict causing the price rise persists for over a long duration.
Q) How should investors recalibrate their portfolio amid rise in volatility? Any theme/asset classes which they should go overweight or underweight on? (Assuming the person is between 30-40 years)
A) For investors aged 30-40, high volatility is an opportunity to accumulate units at lower costs rather than a reason to panic. With a long-term horizon, the goal is to maintain a high growth, yet resilient portfolio that can withstand short-term shocks.
Continue all Systematic Investment Plans (SIPs). Volatility allows SIPs to purchase a higher number of units at a lower cost, which leads to superior, long-term wealth creation.
Asset allocation according to one’s risk profile, liquidity requirements and life goals are the most critical factors. You don’t lose when markets panic, you lose when you panic.
Q) Your advise to investors of things which one must avoid doing in the current environment? We have already seen drop in SIP flows by over 3% on a MoM basis.
A) Monthly inflows hit ₹29,845 crore, down 4% from January’s ₹31,002 crore, ending a two-month streak above ₹30,000 crore. The moderation ties to the shorter month, with some end-of-month SIPs shifting to early March.
Market corrections often trigger fear, leading to panic selling, which turns paper losses into permanent losses. In all the market dips, investors who stayed invested recovered their losses, while those who panicked and sold missed the subsequent recovery, and saw a significant, realized drop in their portfolio.
Waiting for a “low point” to invest usually leads to missing out on the best days of the market. Missing the 10 best trading days in a decade can cut your long-term returns by HALF. Historically in Nifty you could have lost 82% of your wealth by sitting out just 2% of the trading days.
Trying to time the market is a losing strategy because nobody can consistently predict tops and bottoms. Think in terms of years, not months. Volatility is temporary; long-term growth is the target.
(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
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Business
Australia, Japan Will Not Send Navy Vessels to Secure Strait of Hormuz Despite Pressure From Trump
Australia and Japan have declared that they will not send navy vessels to help secure the Strait of Hormuz despite the request of US President Donald Trump.
Iran closed down the Strait of Hormuz following the attacks from the US and Israel, severely affecting the global supply of oil.
Australia, Japan Won’t Send Navy Vessels
According to The Guardian, transport minister Catherine King maintains that Australia had not received any formal requests to help secure the strait.
“We won’t be sending a ship to the strait of Hormuz,” King told the national broadcaster. “We know how incredibly important that is but that’s not something we’ve been asked or we’re contributing to.”
Defence shadow minister, James Paterson, told Channel Nine’s Today show that “”If [a request from the US] came, we’d have to very carefully consider it against our national interest and particularly whether we have the relevant naval vessels available that could safely do that mission.”
As for Japan, Reuters said in its report that Japanese Prime Minister Sanae Takaichi has no plans to send any warships to the strait. The report notes that the country is constrained by its war-renouncing constitution.
“We have not made any decisions whatsoever about dispatching escort ships,” Takaichi told parliament. “We are continuing to examine what Japan can do independently and what can be done within the legal framework.”
Trump Amps Up Pressure on Allies
Trump previously said that his administration has contacted a total of seven countries to request their help with the Strait of Hormuz.
While he did not identify these seven countries, a social media post he published noted that he was hoping China, France, Japan, South Korea, Britain and others would participate.
Trump told reporters on Sunday that he is “demanding that these countries come in and protect their own territory because it is their territory.”
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The contract marks the largest single order won by the company in its power transmission business.
The project involves the complete turnkey EPC execution of the 400/220 kV AIS substation at Saswad, Pune. The scope covers design, supply, erection, testing and commissioning of the facility, along with all related transmission lines. It also includes civil works and the full erection, testing and commissioning components required for the project.
At the core of the project is the construction of a greenfield 2×500 MVA, 400/220 kV AIS substation at Saswad. The facility will also include a 1×125 MVAr bus reactor at the 400 kV level. The substation has been planned with provisions for future expansion to support Maharashtra’s long term growth in power demand.
The project will also involve bay additions at three existing and proposed substations to integrate the new Saswad facility with the current transmission network.
In addition, the scope includes building multiple new 400 kV and 220 kV transmission lines, along with LILO (Line In Line Out) arrangements, to connect the Saswad substation to the wider Maharashtra grid.
Located in Pune district, the Saswad substation is expected to become an important node in Maharashtra’s high voltage transmission network. It will help improve power evacuation capacity for the fast growing industrial region around Pune and enhance grid reliability across the state.Commenting on the order win, Rajesh Ganesh, Managing Director and Chief Executive Officer of Bajel Projects Limited, said securing the Rs 700 crore plus ultra mega order from MSETCL marks a key milestone for the company and highlights its EPC capabilities in the high voltage substation segment. He said a 400/220 kV substation of this scale in Pune district will play a vital role in strengthening Maharashtra’s transmission network and meeting the rising power demand from the region’s expanding industrial and urban areas.
Ganesh added that the project supports the company’s RAASTA 2030 strategy of expanding into high value and complex infrastructure projects while also strengthening its partnership with one of India’s key state transmission utilities. He said the company is committed to delivering the project with high standards of quality and safety.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
In an exchange filing, Tejas Networks said the project marks another important step towards expanding the company’s international wireless customer base. As part of the order, the company’s 4G multiband radio products will be deployed at multiple locations across the unnamed mobile operator’s network.
“We are proud to announce further progress in our pursuit to expand our international wireless business and in taking our 4G/5G mobility stack global. We look forward to growing our presence in the customer’s network while replicating this success in other 4G/5G mobile networks, both in India and across the globe,” said Sanjay Malik, Chief Strategy and Business Officer of Tejas Networks.
The company said it has a versatile wireless product suite comprising 4G and 5G radio access network (RAN) offerings and a converged 4G/5G core solution. Its radio units are designed with flexibility and scalability in mind, supporting multi-band and multi-mode operations to enable cost-effective deployment in diverse real-world environments, it added. “Tejas’s award-winning TJ1400 UltraFlex baseband product provides unprecedented integration of wireless, broadband, transport, and IP network technologies in one compact chassis, thus significantly reducing the cost of network build-outs for mobile and fixed broadband operators,” the company further said.
By inducting Tejas as their new wireless OEM, the company’s South Asian customer now has a trusted and proven technology partner capable of addressing diverse network requirements while benefiting from greater vendor diversity, said Kumar N. Sivarajan, Chief Technology Officer of Tejas Networks. “We are fully committed to support them with innovative and well-differentiated solutions to optimally meet their network performance and user experience objectives,” he added.
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Tejas Networks’ shares have seen a significant surge recently after a sharp slump earlier. Despite the 41% rise in one month, the stock is still down in the red overall this year so far. It has fallen more than 30% in one year.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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Business
Trump demands others help secure Strait of Hormuz, Japan and Australia say no plans to send ships
Trump demands others help secure Strait of Hormuz, Japan and Australia say no plans to send ships
The Indian benchmark **Nifty 50** index experienced sharp volatility on Monday amid ongoing geopolitical tensions and rising global oil prices, as trading resumed in Mumbai following a steep decline at the end of the previous week.
As of mid-morning on March 16, 2026, the Nifty 50 was trading around 23,045 to 23,200 levels, showing mixed movements with an intraday range between approximately 23,042 and 23,284. This follows a closing value of 23,151.10 on Friday, March 13 — a drop of 488.05 points or 2.06% from the prior session’s close of 23,639.15. The index opened lower at 23,116.10 before fluctuating in a broad band.
The previous Friday’s session marked one of the more pronounced single-day losses in recent months, with the Nifty shedding over 2% amid broader market pressures. Trading volume remained elevated, with reports indicating over 1.18 crore shares changing hands in early activity on Monday, reflecting continued investor caution.
Market participants pointed to escalating concerns over the U.S.-Iran conflict as a primary driver behind the recent sell-off. Reports of heightened tensions in the Middle East have pushed Brent crude oil prices above $100 per barrel in recent sessions, raising fears of inflationary pressures and potential disruptions to global energy supplies. Higher oil costs directly impact India’s import bill, given the country’s heavy reliance on foreign crude, and contribute to broader risk aversion in emerging markets.
“The market is grappling with external shocks,” said one Mumbai-based analyst tracking equity indices. “Geopolitical risks combined with elevated commodity prices are weighing on sentiment, particularly in oil-sensitive sectors.”
Broader indices mirrored the Nifty’s choppy performance. The BSE Sensex traded with similar volatility, fluctuating around the 74,500 level after opening mixed. Sectoral trends showed selective buying in pockets such as pharmaceuticals and metals, which provided some support, while oil and gas, realty, and certain financial stocks faced pressure.
On Friday’s close, only a handful of Nifty constituents ended in positive territory, with heavyweights like Reliance Industries, HDFC Bank, and Infosys contributing significantly to the overall decline due to their large weightings in the index. The Nifty’s P/E ratio hovered near 20.3, while the price-to-book stood at about 3.15, levels that some strategists view as offering moderate valuation cushion after the recent correction.
Looking at recent trends, the Nifty has retreated notably from its 52-week high of 26,373.20 (reached earlier in January 2026). The index has lost around 9-10% over the past month in some tracking periods, though it remains up modestly — roughly 3% — on a year-over-year basis from March 2025 levels. The 52-week low stands at 21,743.65.
Investors are closely monitoring upcoming economic data releases, including any updates on inflation, industrial output, and global central bank cues. The Reserve Bank of India’s stance on monetary policy remains in focus, especially if sustained high oil prices feed into domestic CPI readings.
Technical analysts noted that the Nifty has broken below certain key support levels in recent sessions, forming bearish candlestick patterns on daily charts. Some observers have described the move as entering a “deep corrective phase,” with potential further downside toward 22,700-23,000 if selling pressure persists. Conversely, a sustained move above 23,300 could signal short-term stabilization.
Foreign institutional investors (FIIs) have shown net selling in recent weeks, adding to domestic market headwinds, while domestic institutional investors (DIIs) have provided some counterbalancing buying.
Market breadth remained tilted toward declines in early Monday trade, with more stocks falling than advancing in the broader universe. Option chain data for near-term expiries highlighted put interest around the 23,000-23,200 strikes, indicating hedging activity.
Despite the near-term caution, long-term optimism persists among some market watchers
Business
QSR stocks slump up to 47% as weak investor appetite, rising fuel risks dent mood. Time to bottom fish?
While the troubles facing these stocks are not new, the ongoing crisis has only deepened the losses. Sapphire Foods India, which operates KFC and Pizza Hut outlets, has seen its share price fall 12% this week. Devyani International, set to merge with Sapphire to create a single Yum franchise in India, slipped 4% on Friday. Jubilant FoodWorks, the operator of Domino’s and Dunkin’, has lost about 4% over the same period, while shares of Westlife Foodworld (McDonald’s franchisee) have declined 4%. Meanwhile, Restaurant Brands Asia (RBA) has fallen around 3% week-on-week.
The impact on restaurants across the country is already visible as media reports suggest rapid closures. Though these QSR companies have not flagged any likely disruption in operations, so far, brokerage firm JM financial has warned that a prolonged crisis in LPG availability could pose operational challenges for those QSRs where cooking processes depend heavily on gas-based kitchens.
The risk has surfaced as the conflict in West Asia begins to disrupt fuel supplies, pushing restaurants to reassess operations, cooking methods and menu strategies, JM noted.
“For QSR operators such as Westlife FoodWorld, Devyani International, Sapphire Foods India and RBA (Restaurant Brands Asia), the immediate concern pertains to higher kitchen operating costs and the probability of store closures in certain micro markets, which could temporarily affect outlet operations and restaurant-level margins,” the brokerage note added.
However, ElaraCapital sees lesser impact of the LPG shortage on QSR chains compared to non-QSR based restaurants, citing that the QSR companies have minimal dependency on LPG and rely on electric ovens and fryers. In fact, it sees them benefitting due to a consumer substitution effect from LPG-dependent cuisine to QSR format.
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Weak investor appetite
Restaurant Brands Asia, which operates Burger King remains the only exception. Its shares have managed positive returns of 2% over a one-year period, nearly matching Nifty’s 3% returns in the same period.
Sapphire Foods shares are down 47% in the past 12 months, Westlife Food 36% lower while Jubilant and Devyani have plunged, 27% each.
The institutional appetite for QSR stocks has also taken a beating with Foreign Institutional Investors (FIIs) offloading stakes.
FII holding in Sapphire Foods fell 210 bps sequentially in the December quarter while recording a 90 bps decline in Westlife Food in same quarter. In Jubilant and Devyani, foreign stakes dropped by 150 bps and 80 bps, respectively.
The worst happened with Restaurant Brands Asia, where holding declined by 380 bps.
Earnings snapshot
Earnings cut a patchy picture with Devyani widening its consolidated December quarter losses to 10 crore though revenue growth stood 12% YoY to Rs 1,453 crore. The Q3 net profit for Westlife Food fell 86% though total revenue saw a 3% YoY uptick.
Jubilant reported strong set of numbers with profit after tax (PAT) growing 65% to Rs 71 crore while topline rising by 13%. As for RBA, YoY losses narrowed to Rs 7 crore versus 19 crore in Q3FY25 riding on 18% jump in revenue.
What should investors do?
Sudeep Shah, Vice President & Head of Technical and Derivative Research Desk at SBI Securities said QSR stocks have been under significant pressure over the past year and the recent weakness cannot be attributed solely to the LPG shortage concerns. Technically, most of these stocks were already in well-established downtrends, he said, adding that the current crisis has merely aggravated existing weakness rather than causing it.
“Sapphire Foods has been declining since October 2025 and continues to trade well below its key moving averages. Westlife Foodworld is exhibiting a classic lower-high, lower-low structure, with the MACD line positioned below the zero line, indicating sustained bearish momentum. Jubilant FoodWorks remains in a strong downtrend with the RSI languishing around 22, reflecting oversold but weak sentiment. Meanwhile, Devyani International has slipped close to its IPO levels,” Shah said.
His advice to investors is to avoid bottom-fishing and wait for clear signs of fundamental and technical improvement before considering exposure to the QSR space.
Also read: As crude oil price breaches $100 mark, Systematix recommends RIL, a potential multibagger and 4 more stocks to buy
(Disclaimer: The recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times.)
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