As India’s stock market continues its bullish trajectory, veteran market expert Neeraj Dewan shared his updated investment strategy in an insightful interview with ET Now. With a focus on value-driven stock picking over broad sectoral plays, Dewan’s investment radar offers guidance for navigating the current market highs.

Market Outlook: Time for Stock-Specific Strategies

Dewan notes that while earlier investments in private banks paid off handsomely, the market’s rise beyond the 22,000 mark on the Nifty warrants a shift to stock-specific opportunities. He emphasizes evaluating balance sheet strength and fundamentals as Q4 results roll in.

Reliance Industries: Renewed Momentum

After a prolonged consolidation, Reliance Industries is showing signs of strength, thanks to solid performance from its retail and Jio arms. Dewan sees the stock stabilizing around Rs 1500 and recommends investors continue holding it as it trades above its 200-day moving average.

Promising Sectors to Watch

• PSU Banks: Dewan is bullish on PSU banks due to improved asset quality and balance sheet visibility.
• Railways & Infrastructure: Select railway stocks and infrastructure companies are expected to benefit from continued government capex.
• Power: After underperforming last year, the power sector now offers value opportunities.

Auto Sector Picks: M&M Over Tata Motors

Mahindra & Mahindra (M&M) remains Dewan’s preferred auto stock, thanks to robust performance across EV, SUV, and tractor segments. He contrasts this with Tata Motors, which still faces headwinds from its JLR unit. TVS Motor is also on his radar for its consistent delivery and fair valuation.

Stock Picks During Corrections

During the April correction triggered by tariff fears, Dewan capitalized by recommending:

• Mazagon Dock
• Garware Technical Fibres
• Godfrey Phillips
• BSE Ltd.

These picks have since rewarded investors, underscoring his buy-on-dips strategy.

On Tariff Risks & Auto Exposure

Dewan believes tariff-related fears for Indian auto companies are overstated. He highlights that Indian OEMs like M&M have minimal direct exposure to US markets, while even global-facing ancillaries like Bharat Forge and Sona BLW pose limited risk.

Midcap IT: A Word of Caution

Despite decent earnings, Dewan remains cautious on midcap IT names such as Persistent, KPIT, and Coforge, citing expensive valuations and macroeconomic uncertainty in the US. He recommends waiting for better entry points.

Defence Sector: Still a Buy-on-Dips

The defence sector remains a high-conviction area for Dewan. He continues to hold names like Mazagon Dock and HAL, while also tracking Zen Technologies and Garden Reach Shipbuilders. Strong order inflows and contracts support his bullish view.

What to Avoid: Ferrous Metals & Midcap IT

Dewan advises steering clear of ferrous metals, which face global demand uncertainty. While there’s potential in non-ferrous names, he maintains a cautious stance. His previous warning on midcap IT remains unchanged.

Defence sector – still a buy on dips

Neeraj Dewan is still bullish on the defence sector, particularly on stocks like Mazagon Dock and HAL, which have rebounded strongly from earlier corrections. He has booked partial profits in Mazagon Dock but continues to hold significant positions, expecting further upside. Dewan also mentions smaller players like Zen Technologies as strong performers. He believes that ongoing order flows and upcoming contracts for companies like Garden Reach will continue to support this segment.

Sectors to avoid or watch cautiously

Neeraj Dewan warns against investing in ferrous metals at current levels, citing ongoing global uncertainty and a lack of meaningful recovery despite policy support such as import duty changes. While he sees some selective opportunity in non-ferrous metals, he believes the overall metals sector remains weak. Dewan also reiterates his cautious stance on midcap IT, suggesting that investors avoid these expensive stocks until a clearer picture emerges.

Conclusion

Neeraj Dewan’s investment approach for 2025 is focused, data-driven, and grounded in fundamentals. With earnings season in full swing, his sectoral preferences and stock picks reflect a strategy aimed at long-term value creation amid market volatility.

👉 Read more: Top PSU Bank Stocks to Watch in 2025