By Nikhil Agarwal

Copyright indiatimes

AgenciesHowever, the tariff negotiations with the US and the final outcome could be a game changer one way or another.

The Indian stock market has been battling an IPO deluge, Sebi’s tightening grip on F&O trades, and global uncertainty. Amid this churn, Ventura Securities CEO Hemant Majethia sees opportunity in equities, innovation in broking, and risks few are talking about. Here’s his take on what really lies ahead.Edited excerpts from a chat:In the last few months, we have seen sustained supply of new paper via selling by insiders, promoters, PE/VC funds and now IPOs. Can we blame supply pressure as one of the reasons for the Indian market’s underperformance?By the very law of demand and supply, a flurry of IPOs could contribute a dampening effect on markets, other things being steady. But I wouldn’t use the word ‘blame’. IPO issues result in funds being drawn out of the markets and into businesses, and rightly so; a fundamental purpose of the stock market is to provide businesses with a means to raise capital.What do you think will be the impact on the brokerage industry structure if Sebi chooses to end weekly expiry?Initially, there will be a drop in broking volumes, particularly for brokers that are more focused on F&O market business. In time, the entire industry will transition to focusing more on products that encourage cash market participation, like Margin Trading Facility (MTF). Broking houses will also increasingly offer more innovative products, which have elements of advisory baked into them, like stock baskets, algos and robo-advisory. This trend is already gaining momentum.Live EventsThe discount broking industry model has seen some pressure ever since Sebi started crackdown on F&O mess. How do you think the business model can evolve amid the changing regulatory landscape?SEBI is being vigilant and with proactive regulation it is rightly repurposing the F&O market as a facilitator for hedging rather than speculating. The broking industry focus will shift to the cash market and business models will be built around products – like MTF – which can make this market more vibrant. Like I mentioned earlier, products like ‘stock baskets’ and ‘algos’ which are layered with advice, will gain popularity and enhance revenue streams for broking houses. SEBI too is working on suitable regulation so that such products can take-off the right way.On the subject of discount brokers, you’ll see that they have always led product innovation. With talented tech teams and an innovation-first mind-set, they will be able to pivot rapidly and reinvent themselves very quickly. In fact, the entire industry will benefit because when large brokers offer innovative products they expand the market. Those who act fast will gain the most.From a customer’s standpoint, markets will become more investment-oriented than speculative. And as customers experience fewer losses, they will feel more encouraged to engage in the markets. This, in turn, will translate into volumes for broking houses.These are all building blocks that will go towards creating a more secure market eco-system for the long term.How is Ventura advising clients on asset allocation right now? Are you more equity-heavy or balanced with debt and gold/silver?We are an equity-driven organisation at heart and soul. Of course, we do offer our clients a complete spectrum of investment products and take into account their risk profiles while giving them advice but we believe that well selected stocks, stock baskets and equity portfolios will always give the best returns over the long run. So, any underperformance in the market is seen as an opportunity to buy.Which sectors or themes do you think will drive the next 2–3 years of market leadership — manufacturing, consumption, or platform companies?We are typically stock-specific in our selection process, as companies from a range of sectors can outperform. Our advice to clients is to prioritize fundamentally strong companies and adopt a disciplined, long-term investment approach rather than chasing short-term market fluctuations. Having said that, we do feel that the GST revisions could set off a virtuous cycle in consumption. Within manufacturing, we are expecting defence, engineering and shipping to pick up in the short to medium term. Aggregators and supporting tech firms will benefit from the rising tide.India is now the worst performing major global equity market in 2025. Do you think India can come on top of this table in the next one year?That’s anyone’s guess but things can change very fast once there is clarity on tariff agreements with the US.What is your base theory around India Inc’s earnings recovery? Will we see double-digit growth and earnings upgrades Q3 onwards?There are certainly good chances of corporate growth coming back to double digits, given that the impact of GST revisions will kick in towards the end of Q2. The good monsoon and festive season spending are other positive underlying factors that could lift returns in Q3. However, the tariff negotiations with the US and the final outcome could be a game changer one way or another.What risks are most underappreciated in the market today, in your view?De-dollarization – how it will happen, when it will happen and what form it will take – is one of the most underappreciated risks.Add as a Reliable and Trusted News Source Add Now!
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