PL Capital’s Siddharth Vora Turns Bullish, Sees Broad-Based Recovery in Indian Equities
- 18th September 2025
- 04:30:00 PM
- 3 min read
Summary
In a market adjusting to volatility and shifting global risks, PL Capital’s Siddharth Vora sees Indian equities entering a risk-recovery cycle. With cash deployed, portfolio beta raised, and domestic macros holding firm, he argues the stage is set for a broad-based rally driven by Materials, Financials and resilient retail inflows.
Mumbai | September 12 – As markets stabilise after months of volatility, Siddharth Vora, Fund Manager and Head of Quant Investment Strategies at PL Capital, has shifted to a more constructive view on Indian equities. In a recent CNBC interview, Vora said the firm has turned bullish, deploying cash reserves and moderately raising portfolio beta as the domestic macro environment improves.
“As market sentiment improves, we are turning bullish on India. Valuations remain neutral, and our models indicate that the markets have entered a risk-recovery cycle, amidst easing tariff concerns, steady domestic inflows, and signs of a broad-based recovery across sectors” he said.
Risk-Reward Turning Favourable
Vora explained that PL Capital has deployed roughly 15% cash in recent weeks and moved from a defensive to a moderately aggressive stance.
“Having deployed ~15% cash and moderately raised portfolio beta, we believe the major overhang from tariff uncertainty and FII selling is largely behind us,” he noted.
He pointed to multiple domestic tailwinds — robust GDP growth, GST reforms, tax and rate cuts, low inflation, healthy liquidity, supportive DXY and bond yields, alongside peaked-out earnings downgrades and mutual fund cash levels of 5–6%. Together, these factors, he argued, create a firm base for Indian equities.
“While global risks persist, the improving US-India dialogue, stable domestic inflows, and improving factor spreads set the stage for a broad-based recovery over the next 12–18 months. This makes it an opportune time to shift from a defensive to a moderately aggressive stance,” Vora said.
Balanced Multi-Factor Strategy
Unlike previous cycles when PL Capital took stronger style tilts, the current environment calls for balance.
“Given the low factor spread regime, we are running a balanced multi-factor profile, unlike in the past when we adopted larger style tilts. Large- and mid-caps remain our core focus at ~80% allocation (40% each), with small-caps kept below 20%,” Vora explained.
Sector Positioning
PL Capital’s overweight stance continues in Materials and Financials, complemented by selective exposure to Consumption (Discretionary), Industrials, Autos, and Healthcare.
“Within Financials, we prefer Capital Markets, AMCs, and select NBFCs. Within Materials, Metals, Mining, Cement, and Chemicals continue to offer attractive growth and valuation opportunities,” Vora said.
He also acknowledged that while IT has seen a relief rally, the team remains underweight given limited visibility on demand revival. Instead, domestic cyclicals and asset managers remain favoured.
Portfolio Highlights
Vora said recent portfolio winners validate the strategy.
“Recent performers include AB Capital, LTF, Radico, HDFC AMC, Endurance, MOSL, Bharti Airtel, Chalet Hotels, Hindalco, Tata Steel, and GMDC,” he noted.
At the same time, PL Capital has trimmed exposure in private banks — a significant overweight earlier this year — as the risk-reward shifted toward NBFCs and asset managers. Defensive allocations in healthcare remain, but with a reduced weight as risk appetite improves.
Outlook
Vora remains constructive on Indian equities despite global uncertainties. With valuations at neutral levels, improving macro conditions and steady domestic inflows, he expects the market to deliver healthy returns over the next 12–18 months.
“India is well-placed to ride out global volatility. Strong domestic macros and resilient retail flows give us confidence that the recovery is sustainable,” he concluded.
Read more PL Capital insights: https://www.plcapital.in/research
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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
