In the current market landscape, Shibani Sircar Kurian (head of equity research at Kotak Asset Management Company) emphasizes that large and midcap stocks are more favorable than smallcaps amid ongoing volatility. She notes that while the Nifty index is trading at about 19 times on a one-year forward basis—slightly below long-term averages—valuations are reasonable but not in deep value territory. The banking sector has emerged as a standout performer this earnings season, with strong balance sheet growth and stable asset quality, alongside increasing credit growth across both industry and retail segments. Concerns over bad loans have not materialized, and with stabilizing interest rates, net interest margins are expected to improve, benefiting earnings in FY27. Additionally, the telecom sector is witnessing a phase of stability driven by consolidation and gradual tariff increases, leading to improved profitability for major players. Kurian recommends a cautious yet opportunistic investment strategy, advising investors to use market corrections to build equity exposure while remaining selective and attentive to global market cues.