IT, Defence And Banking Stocks Among Top Diwali Picks For Helios Capital's Dinshaw Irani

Private sector banks, financial services, IT and defence stocks are expected to perform well after Diwali, according to Dinshaw Irani, chief investment officer and chief executive officer of Helios Capital Management (India) Pvt.

Speaking to NDTV Profit, Irani said that the stock market dip in the last three to four weeks does not define the whole year. 

“Unfortunately October has been a very bad month and has spoiled the mood for everybody. We believe that it was healthy, and you need that kind of correction for the guys on the sidelines to come back,” he said.

Irani predicted a revival in the large-cap stocks towards December, adding that they have done well for most of fiscal 2025.

“There are pockets of disappointment in the consumption and auto spaces,” he noted.

According to the CIO, the Banking, Financial Services, and Insurance sector can fare well in the next three to four weeks.

“Looking at sectors, we believe that private sector banks, financial services and insurance will continue to do well from the BFSI space,” he said.

Information technology is another space Irani was bullish on.

“Coming to IT, if you have seen the big seven of the Nasdaq, they are doing fairly well in terms of revenue and profitability. That is good news for Indian IT services because these are the guys who are servicing those guys,” he said.

While pharma was a good space for domestic companies and contract development and manufacturing organisations, US-facing companies may encounter problems in the near term, Irani predicted. 

The ace investor was also excited about the defence sector.

“You can be selective about defence out here again and I think the budget will be a big way forward for the defence space once that happens,” he said.

“In the consumption space, we are only bullish on the high-end space such as hotels and tourism and stuff like that,” Irani noted.