Veteran Investor Reveals Winning Themes to Conquer Volatile Markets

As of August 19, 2025, Manish Gunwani, a veteran investor at Bandhan AMC, has shared his insights on navigating the current market environment. Gunwani emphasizes the importance of not being too fearful or too greedy, stating that the market is unlikely to see a significant runaway in either direction.

The macroeconomic environment in India remains strong, with factors like inflation and the current account in check. However, Gunwani notes that valuations and the expected supply of paper could pose headwinds. He expects the market to see a sideways movement over the next couple of quarters, which he believes is not a bad time for stock picking.

Gunwani's medium- to long-term view is that India's nominal GDP will grow around 10-11%. If it falls below that, he expects aggressive fiscal and monetary action, which has already been seen this year. Gunwani's focus is on structural themes, including internet platforms and companies with strong R&D that can conquer global markets through exports. Another theme is financialization, as savings move from banks to capital markets. Affluent consumption, such as in the aviation and hospitality sectors, is also a good long-term theme.

While valuations are expensive, Gunwani believes the macroeconomic environment justifies these high valuations. He is not overly concerned about month-to-month foreign institutional investor (FII) activity, as he expects the dollar to weaken in the medium term, which should lead to their return during any market correction. The biggest risk, in Gunwani's view, is a spike in global bond yields, which could pose a significant challenge.