Financials vs Metals: HDFC Securities Chief Research Officer – Equities Varun Lohchab on Rotating Capital into Banking for 2026

• HDFC securities
• 13 Apr 2026

Financial services have emerged as the premier investment sector for the 2026-27 fiscal year, according to Varun Lohchab, Head of Cash Equities at HDFC Securities.

 

In a recent market briefing, Lohchab identified financials as the largest "weight" in the firm’s model portfolio, citing a recent one-month price correction as a strategic entry point for investors. While global geopolitical tensions have triggered broad market volatility, Lohchab remains "sanguine" regarding credit costs and growth prospects for the sector through FY27.

 

 "Financials still look to be the best sector," Lohchab stated, noting that the industry's fundamentals appear insulated from the worst of recent global shocks.

 

Conversely, Lohchab advised caution regarding the metals sector, which has led market performance over the last year. He recommended that investors consider "taking money off the table" in metals to rotate capital into domestic cyclicals that offer better relative value following the recent dip.

 

The recommendation reflects a broader institutional shift toward high-quality, domestic-focused assets as Indian markets navigate a complex global landscape.

 

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