Market crises have become more frequent due to global interconnectedness, but this trend should be viewed as creating investment opportunities rather than posing threats, according to Chirag Setalvad, Head of Equities at HDFC Asset Management Company. The fund house manages assets worth nearly ₹5,900.00 crore.

Speaking at the 16th India Investment Conference organised by CFA Society India, Setalvad shared insights from his 25-year career in the financial markets. He observed a notable shift in crisis frequency compared to previous generations.

Crisis Frequency and Investment Perspective

"I think that is really unusual, and that will persist going forward," Setalvad explained. "But is that bad news? No, that's fantastic news. You want crisis events to take place so that we can hopefully take advantage of it." He emphasized that investors should maintain focus on long-term goals and avoid reacting to short-term market fluctuations.

Market Valuations and IPO Trends

Setalvad noted that valuations in initial public offerings are becoming more reasonable, though stock markets may continue in a consolidation phase. He pointed out that investors tend to focus excessively on recent weak performance while overlooking strong long-term returns. "Last five-year returns are still in their 20s," he stated, highlighting that markets have delivered solid gains over extended periods despite recent slowdowns.

Indian equities currently trade above historical averages, with the Nifty, mid-cap, and small-cap indices at premiums to long-term valuations. Setalvad suggested that corrections of 15-20% would be necessary to bring valuations closer to average levels. "Consolidation will continue for some time, until valuations normalise," he added.

Global Factors and Trade Outlook

Setalvad emphasized the significant impact of global developments on Indian markets, noting that capital flows and risk appetite are heavily influenced by developments in the US and other major economies. "What happens outside of India is incredibly important," he observed.

Prashant Khemka, Founder of WhiteOak Capital, addressed expectations regarding India-US trade relations. He indicated that prospects for a near-term India-US trade deal have weakened, stating, "I'd be happy if it is in this calendar year," while acknowledging that recent signals suggest possible delays.

Sector-Specific Investment Opportunities

Vikas Khemani, Founder of Carnelian Asset Management, which manages funds worth ₹9,578.58 crore as of December 31, 2025, recommended focusing on areas with visible earnings growth. He identified several key sectors for investor attention:

Khemani specifically highlighted that consumer discretionary stocks and information technology services could benefit if order execution improves and currency trends remain supportive. The emphasis on sectors with visible earnings growth reflects a fundamental approach to navigating current market conditions while positioning for future opportunities.

HDFC Asset Management Company Limited recorded a substantial block trade transaction on the National Stock Exchange, highlighting significant institutional activity in the asset management sector.

Transaction Details

The block trade executed on NSE involved a considerable volume and value, demonstrating active participation from institutional investors.

Market Significance

Block trades represent large-volume transactions typically executed by institutional investors, mutual funds, or other significant market participants. These transactions are conducted outside the regular market to avoid impacting the stock's market price during execution. The substantial value of ₹28.37 crores indicates meaningful institutional interest in HDFC Asset Management Company's equity.

The execution price of ₹2,571.70 per share reflects the market valuation at which institutional participants were willing to transact in the company's stock. Such block trades often signal portfolio rebalancing activities, strategic investments, or divestment decisions by large institutional holders.

About the Transaction

HDFC Asset Management Company Limited, being a prominent player in India's asset management industry, regularly attracts institutional attention. The block trade mechanism allows for efficient execution of large transactions while maintaining market stability and ensuring minimal price disruption during the trading process.