• Market valuation outlook: Nifty forward P/E has corrected to 17.5–18x, with strong support expected at 22,000 (around 16x P/E) and resistance at 24,500, making the 22,000–23,000 band an attractive accumulation zone for long-term investors.
• CPSE ETF target: The CPSE ETF is expected to gain around 25% toward the 125–130 zone, supported by 4–6% dividend yields and surging power demand from AI data centers expanding from 1.5 GW to 8–10 GW by 2030.
• Sector preference strategy: The PMS maintains a 32% allocation in banking and financials alongside 9–10% in defense, while significantly underweighting IT and FMCG over terminal growth and raw material margin pressures.
• CDMO growth opportunity: A 6–7% allocation is held in CDMO players such as Laurus, Sai Life, and Shaily Engineering, expecting 20–25% CAGR over 3–5 years driven by global China-plus-one shifts and the US Biosecure Act.
• Portfolio hedging strategy: The portfolio remains largely fully invested with only 2–3% in cash, actively mitigating downside drawdowns through Nifty put option hedges initiated after the index broke 23,600.