Valuations and opportunities in India's power and real estate sectors

Gautam Trivedi from Nepean Capital shared insights on recent market trends. He noted that the recent market correction, though severe, was anticipated and necessary for adjusting to economic realities. He believes this correction was long overdue and has brought more balanced valuations, particularly in sectors like power, real estate, and travel. Trivedi mentioned that about 892 out of 1,200 stocks examined had fallen by 25% or more recently. He emphasized that while robust sectors could provide investment opportunities, companies in quick service restaurants and building materials are still struggling. He also indicated that the upcoming announcement of reciprocal tariffs by the United States could influence market dynamics. In discussing the IT sector, Trivedi expressed caution. He noted that artificial intelligence (AI) could threaten some lower-level jobs in the Indian IT industry. Although the sector still sees new projects coming to India, the full impact of AI remains uncertain. Trivedi is not optimistic about the IT sector until clearer outcomes are observed from AI developments. On the power sector, Trivedi described it as a structural growth opportunity. He pointed out the increasing demand for energy driven by solar and wind energy projects. He also highlighted the rapid expansion of data centers and the need for localized data storage, which would further drive power demand in India. Overall, Trivedi urged investors to pay attention to sectors poised for growth and to remain cautious about the potential disruptions from AI in the IT industry.