Market headed for record highs; buy metals, PSU banks, and energy stocks on every dip: CA Rudramurthy BV

Indian markets are showing signs of renewed momentum after weeks of consolidation, and CA Rudramurthy BV, Managing Director at Vachana Investments, believes this uptrend is far from over.

Speaking to ET Now, Rudramurthy said that the Nifty’s recent breakout has confirmed a reversal in market trend — turning from a falling to a rising formation. According to him, this shift signals the start of a new bullish phase that could soon take indices back to all-time highs.

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“The market has clearly made a bottom. The formation has reversed to rising tops and bottoms — a strong technical sign that the next leg of the rally has begun,” he said.

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Buy on every dip: Bullish call for Nifty and Bank Nifty

The Nifty has closed in the green for four consecutive sessions, and Rudramurthy expects this momentum to sustain.

“We’re likely to see short phases of time-wise consolidation, which is healthy, but this is a market to buy on every dip,” he emphasized.

He predicts the Nifty could soon test the 25,450–25,500 range, with the Bank Nifty hitting fresh all-time highs before the Nifty does.

Despite continuous FII selling, Rudramurthy believes that foreign investors will soon return as buyers, covering their short positions and adding fresh capital.

“India has underperformed global markets over the past year. FIIs will turn bullish soon — it’s just a matter of time,” he added.

Sector focus: Metals, PSU banks, and new-age companies

Rudramurthy’s sector preferences are clear: he remains bullish on metals, public sector banks, and platform-based new-age companies.

“Metals look very strong technically and fundamentally,” he said, adding that PSU banks such as SBI, Canara Bank, and PNB are among his top picks for the next leg of the rally.

He’s also optimistic about oil marketing companies including BPCL, HPCL, and IOC, which he believes “look very comforting at current market prices.”

On the tech front, Rudramurthy said that several new-age platform companies like Paytm, Nykaa, and Zomato are showing strong resilience and could continue to perform well in the medium term.

Top stock picks: JSW Energy & Chennai Petro

Among specific stocks, Rudramurthy sees breakout opportunities in JSW Energy and Chennai Petroleum Corporation Ltd (CPCL).

JSW Energy:
“The stock has consolidated and is now giving a clear breakout. Last quarter’s numbers were stellar, and this quarter should be even better,” he noted.

Buy at current levels, with a target of Rs 580–Rs 600 and a stop-loss of Rs 535.

Chennai Petro:
“It’s showing strong volume breakout above ₹780. The trend looks powerful,” he added.
Buy with a target of Rs 900 and a stop-loss of Rs 780.

Market outlook: Fundamentals catching up

Rudramurthy acknowledged that the previous earnings season was slightly disappointing and valuations were stretched, but said recent business updates and auto sales data indicate a turnaround.

“Fundamentally, things are improving. Auto sales are strong, business updates are positive, and GST rationalization is helping sentiment,” he said.

He believes that India’s relative underperformance compared to global markets in the past year will soon reverse as liquidity returns and earnings recover.

Stay invested, be selective, and think long-term

Wrapping up his market outlook, Rudramurthy advised investors to remain optimistic but selective:

“This is a bullish market. Stay invested, buy on dips, and focus on quality names across metals, PSU banks, and energy. The next big breakout is not far.”