Financials Top Bullish Pick Right Now, Says HDFC Securities Chief Research Officer – Equities, Varun Lohchab

Despite ongoing global geopolitical uncertainty, financial sector stocks are emerging as the preferred choice for institutional investors in 2026, according to a recent market analysis from HDFC Securities.

HDFC Securities Chief Research Officer – Equities Varun Lohchab, identified financials as the most bullish sector in the current landscape. Speaking during “The Big Review” series, Lohchab noted that the recent market correction, driven by international tensions, has created an attractive entry point for investors.

“Financials still look to be the best sector,” Lohchab said, noting that the sector maintains the highest weight in the firm’s model portfolio. He expressed confidence that credit costs and growth trajectories for major financial institutions would remain resilient through the 2027 fiscal year.

While the broader market fall has made several sectors attractive, Lohchab cautioned investors to scale back positions in the metals industry. Metals have been among the top – performing sectors over the past 12 months, leading HDFC Securities to recommend “taking some money off the table” to lock in gains.

Lohchab suggested that investors rotate capital from metals into “domestic cyclicals,” which are expected to benefit more directly from India’s internal economic momentum.

The shift in strategy comes as domestic institutional investors continue to navigate a volatile global environment, prioritizing sectors with strong fundamentals and reasonable valuations. HDFC Securities emphasized that while short – term geopolitical conce rns may trigger fluctuations, the long – term outlook for well – capitalized Indian financial institutions remains positive.