India’s stock market is moving into a phase where individual stock selection will outweigh broad market exposure, said Siddhartha Khemka, Head of Retail Research at MOSL. Muted results from large companies and ongoing macroeconomic pressures are clouding the outlook. Although overall earnings growth faces headwinds, mid- and small-cap firms have shown resilience. Midcap companies in the firm’s coverage delivered 17-18 percent earnings growth, above the expected 14-15 percent. Concerns over high crude oil prices, a weak rupee and below-normal monsoon forecasts are weighing on sentiment. Khemka advised focusing on domestic themes with reliable earnings delivery. He highlighted cables and wires, cooling products, manufacturing and power as preferred areas. Stocks such as Polycab, KEI and RR Kabel were noted positively, along with Voltas and Blue Star due to extended summer demand. Power was described as a key long-term theme supported by rising electricity needs and renewable investments, with JSW Energy, Tata Power and NTPC cited as beneficiaries. Among dividend plays, Coal India was preferred over ITC for its volume growth and improving realisations. In autos, electric vehicles were favoured over flex-fuel options, with Ather Energy, TVS Motor and Tata Motors Passenger Vehicles highlighted.
