In Brief
- Kamath confirmed a 90% portfolio allocation toward the stock market, emphasizing that current valuations present rare long-term entry points.
- He noted that quality businesses in sectors like banking, IT services, and pharmaceuticals are trading at attractive valuations of 11 to 13 times earnings.
- The remarks come during a challenging year for Indian indices, with the Nifty 50 down 13.24% in 2026, lagging behind several global peers.
Capitalizing on Market Headwinds
Speaking at the NDTV World Summit, Zerodha co-founder Nikhil Kamath shared an optimistic outlook on Indian equities despite a broader sluggish trend in the markets. While the Nifty 50 index has declined by 13.24% over the course of 2026, Kamath stated that he views the current environment as an exceptional buying opportunity not frequently seen outside of major economic disruptions like the COVID-19 pandemic.
"I'm 90% allocated to the equity markets. I think valuations are great today in many, many sectors," Kamath remarked during his conversation with NDTV.
Spotlighting Value in Core Sectors
Kamath pointed out that blue-chip segments offering steady fundamentals are currently undervalued relative to their historical growth. Specifically, he highlighted that investors can acquire shares in quality banking institutions, IT services firms, and major pharmaceutical companies at multiples ranging between 11 and 13 times earnings.
He also noted that despite short-term headwinds, India's broader market ecosystem still has significant room for growth, citing low overall equity investor penetration and the ongoing expansion of the country's financial infrastructure.
