Q4 results may spark selective market rebound: Daljeet Kohli

In light of increased market volatility and significant reactions to quarterly earnings, Daljeet Kohli recommends a disciplined bottom-up investment approach, emphasizing that sector-wide bets may not yield expected results. In an interview with ETNow, Kohli highlighted the growing disparity in stock performance based on quarterly results, noting that companies with disappointing figures in Q3 faced sharp declines, while those with strong performances gained traction. He anticipates a similar trend for Q4, suggesting that positive earnings will be recognized by the market. Kohli's portfolio exhibited impressive growth, with revenue and PAT surging by 20% and 40%, respectively, outperforming the broader market. He also addressed challenges in the microfinance sector, particularly due to ongoing regulatory pressures in states like Bihar, urging a shift towards diversified lending models. While Kohli acknowledged the IT sector's valuation corrections, he advised caution due to uncertainties surrounding AI disruptions and global demand. He suggested that before investing in IT, investors should wait for clear evidence of effective AI integration that maintains profitability. Additionally, he indicated that sectors outside IT may present better investment opportunities at present.