SynopsisMarket expert Neeraj Dewan advises selective investing amid volatility, favoring power, energy infrastructure, steel, aviation, commercial vehicles, FMCG, and select auto ancillaries. He remains cautious on IT due to weak guidance. Dewan sees opportunities in renewable energy and battery storage, and believes oil price stabilization will aid aviation stocks.ETMarkets.comThe IT sector, however, remains an area where he prefers to stay cautious until growth visibility improves.New Delhi: Amid growing market volatility and concerns over global developments, market expert Neeraj Dewan believes investors should remain selective while taking advantage of corrections in sectors with strong long-term fundamentals. While he remains cautious on the IT sector, he sees opportunities in power, energy infrastructure, steel, aviation, commercial vehicles, FMCG, and select auto ancillary stocks.Commenting on the sharp correction in IT stocks, Dewan noted that the sector had witnessed a strong rally before the recent sell-off, resulting in significant position building. While the depreciation of the rupee may provide some support to earnings, he believes the weak guidance from most technology companies remains a concern. "The guidance given by most IT companies was not that great," he said, adding that any near-term rallies may face selling pressure. According to Dewan, investors should remain cautious on the sector over the next two to three quarters as earnings visibility remains limited.On the power and energy space, Dewan maintained a positive outlook, highlighting opportunities across renewable energy, battery storage, and energy infrastructure companies. While he believes the sector continues to offer attractive long-term prospects, he advised caution on BHEL after its recent run-up. "If someone is holding BHEL, they can continue to hold, but I will not advise adding at current levels," he said. Instead, he sees greater value in companies investing heavily in future energy solutions and capacity expansion.Dewan is also constructive on aviation stocks, which have been under pressure due to fluctuations in crude oil prices. He believes the worst of the oil price spike may be behind the market and that stabilisation could support airline profitability going forward. "We may have seen the peak in oil prices," he said, adding that aviation and other oil-sensitive stocks can gradually be accumulated despite short-term volatility.The steel sector remains another area of optimism for Dewan. He pointed out that domestic steel prices have remained supportive and that production trends have been healthy over the past several quarters. Strong pricing and volume growth have translated into robust profitability for major steel producers. "Valuations are still not expensive, and I remain positive on the steel pack," he said. While some short-term challenges related to energy costs may impact volumes, he believes the broader earnings outlook remains favourable.Among sectors impacted by recent policy announcements, Dewan prefers commercial vehicle manufacturers over oil marketing companies. While he remains neutral on OMCs until there is greater stability in crude prices, he expects commercial vehicles to outperform passenger vehicles in the near-to-medium term. Strong order books, infrastructure spending, and improving demand trends continue to support the segment. "The CV space can do better than the passenger vehicle segment in the short to medium term," he said.Despite the recent correction in the broader market, Dewan believes investors should not become overly pessimistic. In his view, a significant portion of the negative news has already been priced into stock prices. "The market is getting a little oversold and too many negatives are being priced in," he observed. He continues to favour infrastructure, energy, FMCG, and selective pharmaceutical companies. According to him, recent weakness has created an opportunity to gradually build positions in quality businesses.Within the auto ancillary segment, Dewan is particularly positive on tyre manufacturers. He highlighted that several tyre companies delivered strong quarterly results, while valuations remain reasonable despite near-term concerns linked to crude oil prices. "The last quarter was very good for most tyre companies, and valuations are not expensive," he said. He also pointed to ongoing capacity expansion plans and healthy cash flows as factors that could support long-term growth.Overall, Dewan's strategy remains centred on selective accumulation during periods of market weakness. While he expects volatility to persist in the near term, he believes sectors such as energy infrastructure, renewables, aviation, steel, commercial vehicles, FMCG, pharmaceuticals, and auto ancillaries offer attractive opportunities for long-term investors. The IT sector, however, remains an area where he prefers to stay cautious until growth visibility improves.Read More News on(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. 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