October 7, 2025

Exciting news for stock lovers! George Thomas, the Fund Manager at Quantum AMC, feels Indian shares are starting a fresh and shining phase. With earnings season near, he says the market looks ready for a good bounce. Why? Because credit is growing, people might start buying more, and prices are fair after a year of dips. "Given that markets have corrected over the last one year and earnings have trended up, the upside potential for investors has improved. From a long-term perspective, it’s a good time to stay invested and even make fresh allocations to equities," Thomas told ET Now. Banking and FMCG Start Shining Thomas spotted hopeful signs from banks — credit is picking up again after a slow patch. "Banks have reported sequential uptick in credit growth, which was expected." On daily goods companies (FMCG), things are steady but the big comeback is still waiting in the wings. Boost from Tax Cuts Tax cuts are helping people keep more money in their pockets. Thomas expects this will boost how much people buy soon. "Given the low base of earnings from previous quarters, the upcoming results season should look reasonably positive," he added. Big Thumbs Up for Financials and IT Quantum AMC is keeping a big bet on banks, insurance, and asset management firms. Why? Because more people are saving and India's economy is getting more organized. IT services stocks too are becoming cheaper and ready for a bounce. Thomas said, "Our allocations remain large in financials and IT services. We are quite optimistic about these sectors from a two-year forward perspective." Fresh Picks: Pharma and Logistics Thomas also gave us two hot new picks. One is a generic pharma company facing challenges but with new medicines that could save the day. The other is a logistics firm set to gain from India's new Dedicated Freight Corridor and growing rail container traffic. Smart Investing Tips Though the market has had a shakeup in the last year, Thomas warns against sitting out. "Markets have built a strong earnings base, and valuations now offer a better risk-reward balance," he said. But stay away from expensive small companies and pick funds that watch prices carefully. "Investors should choose funds that pay attention to valuations — especially in small and midcaps. These funds can reasonably outperform over the next few years." Eyes on Global Trade Thomas points out that how the US and India wrap up trade talks will impact markets soon. Good news on this front could push stocks higher. But he reminds us that India's strong fundamentals remain solid in the long run. Final Word: Don’t Miss the Party! George Thomas’s message is vibrant and clear: now is not the time to sit on the sidelines. With credit growth, rising buying power, and smart valuations, the stage is set for exciting gains in Indian stocks. "It’s not the time to be on the sidelines. Earnings growth should turn upward from here, and investors who stay patient can see meaningful gains over the next two years," he concludes. So, get ready to join the market fiesta and watch your investments shine!

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Tags: Indian equities, Earnings season, Credit growth, Financial sector, Quantum amc, Stock market outlook,