FY27 Playbook: HDFC Securities identifies where to invest and which sectors to avoid

The broader market correction has made valuations in several sectors more appealing. Investors are now looking for selective opportunities for the upcoming fiscal year.

Focus on fundamentally strong companies within sectors identified for growth, maintaining a long-term perspective given the current attractive valuations.

For Indian markets, this story mainly matters for the Financial Services pocket. The current signal is bullish, so traders should watch whether the effect spreads across the sector or stays limited to a single name.

Watch whether the market validates this read through price action, volume, and breadth. If the headline matters, the signal should show up in execution, not just in commentary.

• •Frontline indices have corrected by more than 10% since the US-Iran conflict.
• •Nifty 50 is trading at approximately 18x earnings.
• •Nifty 50 valuation reflects a 14% discount to its long-period average (LPA) of 20.9x.
• •HDFC Securities identifies where to invest and which sectors to avoid for FY27.
• •Risk flag: Geopolitical tensions (US-Iran conflict) could escalate further.