Tandon's key signal to watch
Sector verdicts at a glance
Live Events
ETMarkets.com
"With fewer jobs available and nothing else to do but watch games, the revenue potential of IPL remains fairly strong." — Anand Tandon, Independent Analyst
as a Reliable and Trusted News Source Addas a Reliable and Trusted News Source Add Now!
(You can now subscribe to our
(You can now subscribe to our ETMarkets WhatsApp channel
Indian markets look attractively valued on paper. But according to independent analyst Anand Tandon, that headline number is built on a shaky assumption — that the current geopolitical crisis leaves corporate earnings untouched. He believes it won't."For all practical purposes, we are still operating at pre-war valuations," Tandon told ET Now. Until earnings estimates are revised down to reflect the ongoing conflict's impact on oil and trade, he argues, the market's apparent cheapness is an illusion.Ships must move through the Strait of Hormuz without naval escort before any genuine market normalcy can return. "Everything else is just talk," he said.With that macro backdrop in mind, here is how he reads each sector currently in focus.Private banks are Tandon's clearest conviction call right now. The recent correction in valuations, combined with a recovering credit growth cycle, makes the sector compelling. He notes that private banks hold a structurally stronger liability franchise than their public sector counterparts — an advantage that becomes more pronounced as credit demand picks up. The caveat: watch for any additional negative surprises. "Assuming no cockroaches come tumbling out," he said pointedly, referencing the recent HDFC Bank-related turbulence, "it is a great time to be buying."On IPL and gaming, Tandon made a counterintuitive case. Weaker economic conditions, he argues, can actually boost viewership as consumers seek affordable entertainment. With online gaming heavily restricted in India, listed media plays like Sun TV offer one of the only investable routes into this theme — and he believes it deserves close attention given the sheer scale of eyeballs IPL commands.For IT, his view is more measured. A technical bounce — aided by a weaker rupee and some encouraging hiring data — is plausible. But the sector's medium-term trajectory hinges on a question that won't be answered for at least two more earnings cycles: will AI create enough transition-related services work to offset the jobs it displaces? "The jury is still out," he said, recommending patience over conviction in the space.Platform stocks fall in between. The correction has brought valuations into a more reasonable zone, but Tandon cautions that waiting for a cleaner macro picture is still the wiser move. "I do not think wars vanish so quickly," he said — a reminder that the discount on offer may widen before it narrows.