Kotak Neo analyst says Indian market nears key support, prefers large caps

what happened

Shrikant Chouhan, Head of Equity Research at Kotak Neo, said India's equity market is trading close to key support levels. In his view, the 22,000 mark is acting as the main floor for the market. The piece was published by Moody's, citing the Asian News International agency.

Chouhan noted that the market is valued at 16 times FY28 earnings, which he called attractive for investors with a medium to long-term horizon. He said nearly 80 per cent of Nifty 50 constituents trade at least 20 per cent below their fair values. Short-term direction, in his view, will depend heavily on news flow between the United States and Iran.

He also outlined sector views. Performance across several key sectors met or beat expectations during the ongoing second-quarter earnings season. He highlighted banks, NBFCs, the CDMO segment in pharma and select auto companies that have corrected sharply. He said large IPOs, including the proposed Jio Platforms offering, will not shape the market in the short term but could raise India's visibility among global investors.

why it matters

The point matters for markets because the analyst's valuation view rests on forward earnings multiples, while he stresses high near-term uncertainty from geopolitics. These are his personal views, not a guarantee of price moves, so market participants should weigh the external backdrop and US-Iran developments.

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