8 hours Ago
Ambit Asset Management is using the current rally to book profits and rebalance portfolios in line with its long-term strategy. “We avoid taking cash calls in our portfolio and will continue to use this rally to book profits and rebalance to optimize portfolios,” says Sushant Bhansali, CEO, Ambit Asset Management. Edited excerpts from a chat:The mood in the market seems to be swinging in between the two extremes of greed and fear very quickly depending on the news flow coming in from the White House.
How are you handling this period of abnormal volatility? Did you tweak your portfolios well before the meltdown began?Current market tariffs are more of a distraction than a meaningful influence on the broader investment outlook, as our investment philosophy remains grounded in long-term fundamentals rather than short-term noise. We avoid taking cash calls in our portfolio and will continue to use this rally to book profits and rebalance to optimize portfolios. In this volatility many opportunities have surfaced as well for long term wealth creation.
What’s your current asset allocation mantra? Are you playing defense with value or offence with growth?Our approach is a blend of stability and opportunity. We are adding domestically oriented businesses to bring resilience during volatile periods. At the same time, we are leveraging the recent market rally to exit and restructure positions in sectors better positioned for growth amid uncertainty.
This measured reallocation is aimed at enhancing performance and mitigating risk.Within your portfolios, are you tweaking cash levels or doubling down on equities on every dip?We continue to believe India will remain the fastest growing economy and subsequently earnings growth will be robust. Our unwavering focus on growth at reasonable valuation strategy enables us to use the dip in the market to participate in India's Growth Story.
If you had to pick one sector for FY26, which one would you be backing and why?The consumption space - especially retail and personal income (RPI) consumers - is currently at an inflection point, similar to where the banking sector once was. Valuations for these businesses are now below their historical averages. Income tax concessions are expected to significantly bolster consumption, making FY26 a strong year for domestic demand.
These tax incentives and reducing interest rates are likely to be key drivers of this consumption boost.One view on the Street is that all export-facing sectors, whether it is IT or pharma, will face trouble in the days ahead. Are consumer stocks the only defensive bet left in the market at this stage?While domestic-facing businesses serve as defensive plays, certain export-oriented sectors will also remain in favor.
However, the uncertain global environment may lead to some variability in returns. The IT sector, in particular, is entering an attractive valuation zone and could present selective opportunities. That said, FY26 is shaping up to be a stock-picking market rather than one driven by broad sectoral trends.
If the trade war gets limited, by and large, between the US and China, what kind of impact do you see on EM flows? Will India become more attractive for FIIs or will the entire EM basket suffer?Regarding fund inflows, India will be a major beneficiary of trade war between superpowers as it is a big market open for trade. The anticipated depreciation of the Chinese yuan to enhance competitiveness is unlikely to shift this trend materially. Foreign investments to remain constructive on India, supported by a favorable macroeconomic outlook.
Which is that one data point which matters the most at this stage - bond yields, dollar index, Dow Jones or Q4 earnings?Key indicators such as the US Dollar Index, long-term bond yields, and corporate earnings will play a critical role in shaping market sentiment in the near term. Over the medium to long term, earnings performance will be the decisive factor, and the upcoming Q4 results will offer important insights into how India is faring compared to other global markets..
