Reflecting on the interval, Sandeep Tandon, CIO, Quant Mutual Fund in an interview to ET Now stated, “See, necessary or key information level is that once you see this type of excessive stage of greed is available in in a few of the shares the valuation spiking, how properly you’ll be able to maintain your feelings and never capable of say no to those alternatives additionally, I feel that will likely be an necessary commentary as a result of lot of individuals get sucked in in these cycles.” He added that historical past repeatedly exhibits the price of chasing momentum on the incorrect time. “And possibly in historic we’ve seen once you really sucked in on the peak of the cycle after which the influence is far more significant, extra psychological, much less monetary and that has its personal influence by yourself understanding of the market or the portfolio development.”
Regardless of the Nifty touching file highs, the ache throughout many portfolios was onerous to disregard, particularly in mid and smallcaps. In response to Tandon, one of many greatest classes was that even seasoned professionals are usually not resistant to market euphoria. “See, the necessary studying is that even for those who actually have a look at even better of the cash managers, sensible strategists, better of the buyers who folks respect, in addition they get carried away after we are seeing that promoters are promoting, non-public equities are promoting totally understanding that…, I at all times imagine one thesis, promoters are the largest insider, non-public fairness are quasi promoter, they’re the largest insider.” He questioned the logic of shopping for when insiders are exiting. “Once they promote, they don’t see worth at these specific costs then how come we as a cash supervisor see worth in a few of these names.”
He identified that robust inflows usually masked underlying dangers. “So that’s the necessary commentary and we see better of the names getting carried away in these participation and all of us speak in regards to the provide could be very massive however have a look at the cash move which is mutual funds are getting.” In response to him, participation was not compelled. “Everyone says there are different alternatives additionally. It’s not obligatory it’s a must to take part totally understanding that promoters are exiting, totally understanding the valuations are costly, and all of us are inclined to take part.”
Putting accountability squarely on buyers, Tandon stated, “Clearly, one can’t blame to the bankers and the brokers or the promoter, it’s the investor themselves to be blamed first as a result of they’re collaborating.” He added that blaming regulators or intermediaries misses the core subject. “We at all times hear that okay IPOs are coming at costly valuation, regulators ought to look into it or the bankers ought to look into it. Why not buyers ought to themselves…, they should do their very own evaluation whether or not they wish to take part.” Demand, he stated, finally drives provide. “Since they’re collaborating, if there’s a demand, provide will come at each value. So, it’s all about demand recreation. If there isn’t any demand, the availability won’t come.”
Summing up the 12 months, he stated, “So, it is a vital studying and commentary which we noticed in 2025. So, it was like unforgettable 2025, one thing comparable pattern you may see possibly to start with of 2026 additionally as a result of that cycle remains to be not peaked out, persons are nonetheless collaborating.”
On the prospects of restoration, Tandon struck a selective observe. “So, not all. In case you say that it will likely be throughout bullish transfer. No.” As a substitute, he’s specializing in ignored areas. “I’m choose alternative, the sector which has or the inventory we discuss which has comparatively enticing valuation now, comparatively underowned. They’re buying and selling in uncared for zone.” Traditionally, such shares are inclined to get better sooner. “These are the shares which have potential to come back again and there’s a pattern we’ve seen when the bounces come, these are the names that are coming again.” In distinction, excesses take time to unwind. “As in comparison with all these names which had been in totally admired territory, costly valuation, extraordinary hype, these are the names struggling has simply began. The massive ache remains to be pending.” From a macro standpoint, Tandon believes circumstances have improved meaningfully. “So, allow us to perceive from India macro perspective as in comparison with January 2025 versus January 2026. Our macro image is much extra superior.” He highlighted exhaustion in overseas promoting. “We have now seen excessive exhaustion within the promoting level which we’ve seen from the FIIs perspective.” In response to him, the market is transitioning. “So, if I have a look at the cumulative information factors in 2025 was the start of that correction and it’s a bottoming attribute which we’re seeing, it was a peaking attribute in 2025 and 2026 a bottoming attribute.”
Coverage measures may additional assist restoration. “So, when financial system is coming again, authorities is placing lot of effort in boosting the consumption whether or not from the GST rationalization or discuss revenue tax perspective or some coverage adjustments, I feel then 2026 must be a greater 12 months as in comparison with 2025 and clearly financial system goes to come back again.” He sees alternative in economically linked sectors. “Now, something which is extra associated financial centric inventory ought to do higher whether or not you discuss NBFC, whether or not you discuss banks, you discuss massive infra names.” Whilst capex has moderated, he stays constructive. “Regardless of that capex cycle has diminished a bit and general capex has come down however there are particular alternatives which is seen as a result of a few of these names have corrected or consolidated for an extended time period and these are the identify, have potential to get better from the present ranges.”
Nonetheless, dangers stay acute in segments pushed by hype. “All these hype which we’ve seen within the so-called new age costly IPO, that is the ache level the place provide will carry on approaching, allow us to say, perpetual foundation.” He warned that exits are removed from over. “As a result of if non-public fairness has to exit, they’ll exit until the time their holding comes right down to zero.” In consequence, strain may intensify. “So that is the place I see main quantity of ache as a result of final 12 months extraordinary cash went into a few of these names and lots of people are caught.”
Tandon urged buyers to look intently at post-listing efficiency. “In case you now sit down and analyse the IPO, what are the variety of IPO got here and what number of shares are buying and selling beneath the IPO value and what number of shares are buying and selling considerably beneath the IPO value, you’re going to get some solutions.” Over time, endurance might put on skinny. “And as time passes, one quarter, two quarter, one 12 months, folks will begin getting impatient about it that they’re getting adverse returns.”
As markets transfer into 2026, the expertise of 2025 serves as a stark reminder that valuation self-discipline and emotional management stay essentially the most crucial instruments in navigating cycles pushed by extra and optimism.
