Avoid expensive themes, focus on valuations and stock picking: Samit Vartak

Samit Vartak of SageOne Investment Managers said markets have recovered from lows but sentiment remains jittery, with Nifty still 9-10 percent below its September 2024 peak. He noted that crude oil overhang has eased though geopolitical risks remain unpredictable, while corporate earnings remain encouraging with small-caps delivering around 25 percent growth, mid-caps 22-23 percent, and large-caps 18-19 percent in the previous quarter. Vartak remains constructive on small-caps citing attractive price-to-book valuations below historical median, but cautioned investors against assuming successful outcomes from IT sector AI acquisitions given execution and integration risks.