The Indian stock market has started FY27 on a strong note, with the Nifty 50 index increasing by more than 7% in April 2026. However, market volatility persists due to uncertainties surrounding the US-Iran conflict, which has caused a 10% correction in frontline indices since the conflict began. Currently, the Nifty 50 is trading at about 18x earnings, reflecting a 14% discount to its long-term average of 20.9x. HDFC Securities suggests a Growth at a Reasonable Price (GARP) strategy, focusing on undervalued growth stocks while avoiding speculative bubbles. The brokerage maintains a negative outlook on the cement sector due to anticipated pressure on capacity utilization and margins from aggressive capacity additions. Conversely, sectors such as consumer discretionary, real estate, and automobiles are viewed positively, with expectations of demand recovery and growth normalization. HDFC Securities emphasizes the importance of identifying sectors and stocks with strong potential to outperform, rather than trying to predict overall market movements.