market volatility: Deven Choksey bullish on 3 sectors for long-term portfolio play

“We believe this volatility may subside as we move into the new month and new contract, as rollovers take place. What we’re also seeing is that as corporate sectors begin to announce their results, there is a significant shift in positions — from one counter to another, or from one sector to another. This is also contributing to the current volatility,” says Deven Choksey, MD, DRChoksey FinServ Pvt. Ltd.The first and second halves of the market look quite different. There’s positive sentiment coming in, but yes, we also need to consider that a lot of global uncertainties are weighing on the markets. There are many contingencies, and in the midst of it all, the Indian markets are handling things quite maturely. What is your take on the market texture?Deven Choksey: Well, volatility during expiry days is well known. Typically, we’ve seen the shift from Thursday to Wednesday and then from Wednesday to Tuesday when the monthly expiry approaches. That’s when the maximum volatility and price fluctuations occur in the market.We believe this volatility may subside as we move into the new month and new contract, as rollovers take place. What we’re also seeing is that as corporate sectors begin to announce their results, there is a significant shift in positions — from one counter to another, or from one sector to another. This is also contributing to the current volatility.

At the same time, this volatility is creating opportunities. Some sharp price corrections are making fundamentally strong companies look quite attractive — not just from a three-to-four-year perspective, but even in the near term, over the next three to four quarters.

Broadly speaking, this year has started with promise. We’re factoring in lower input costs, lower interest rates, and a recovery in consumption, as well as an improvement in the overall business environment — both B2B and B2C. This is leading to stronger growth prospects for the current year.

So, we remain distinctly confident that FY25–26 will progress well across upcoming quarters — both in terms of margins and overall revenue growth.Clearly, long-term investing has proven to be a rewarding experience, and it’s important for investors to understand that. That said, there are always many investment ideas circulating. Are there any sector-specific approaches you’d like to share with us? Also, regarding Jio Financial Services — we now see many brokerages and experts highlighting the reasons to invest in it, but I remember you had spoken about the company quite early on.Deven Choksey: Our approach has always been to invest in a company or business when it is in the early stages of growth — when it’s still nascent — and then allow it time to mature, eventually monetizing the investment. That’s been our philosophy.So it’s no surprise we identified companies like Jio Financial early, before they were widely recognized. In Jio’s case, we saw a unique model emerging — encompassing the NBFC (credit) segment, asset management (AMC), insurance, and wealth distribution. These four verticals were clearly beginning to take shape. We even outlined unit-level metrics on how the business could unfold — and we’re now starting to see that materialize.

I wouldn’t be surprised if Jio’s AMC business eventually surpasses many existing AMCs in the next three to five years. The scale and reach they can achieve with mass-market financial products could be enormous.

We apply a similar approach across other segments — whether it’s BFSI, manufacturing, pharmaceuticals (especially in contract research, manufacturing, and API), or B2B solution providers in engineering and R&D. We see similar growth opportunities in these areas.

In fact, sectors like power, power utilities, and related manufacturing and IT are brilliant long-term opportunities. If one can identify strong companies in these segments, now is a very good time to build exposure — and to view these sectors with a holistic, long-term lens.