Gautam Shah’s Top Picks: Metals, Real Estate, and PSU Stocks
Gautam Shah, a prominent market analyst, believes that the Nifty could move towards 26,200 before a fresh review. He is bullish on metals, real estate, and PSU stocks, citing strong fundamentals and technical positioning.
StocksNiftyReal EstateMetalsPsuReal Estate NewsJul 01, 2025
The Nifty recently went through a five-week phase that many mistook for distribution, but it turned out to be a period of healthy consolidation. This helped build a higher base, and once the index crossed the 25,200 mark, momentum accelerated further. At present, there are no visible signs of the market topping out. Shah believes the Nifty could move towards the 26,200 level before a fresh review, and advises investors to stay bullish and not overthink the next 10–12 days.
Markets have already weathered considerable stress, both locally and globally. The broader market experienced a bear phase between October and March, with stocks declining an average of 36–37%. Coming out of that phase, along with signs of economic improvement and positive commentary from corporate India, Shah expects earnings to improve further. Additionally, recent measures by the Reserve Bank of India (RBI) could act as a tailwind, making significant disappointment during earnings season unlikely.
The financial sector has been the key driver of the current rally. Banks, NBFCs, insurance, and housing finance companies are all performing well. According to Shah, these segments offer attractive valuations, have strong fundamentals, and are technically well-positioned. With visible earnings growth and signs of smart money flowing in, this sector is expected to lead the market for the next three to six months.
Gautam Shah highlights that the outperformers of the last three years are no longer leading the charge. Instead, new themes are emerging. Metals, particularly non-ferrous stocks, are technically poised for gains of 15–30%. Real estate, closely linked to India’s growth story, also looks attractive, with top names offering good risk-reward setups. Additionally, PSU stocks, especially PSU banks, remain undervalued—even with the Nifty at 25,500—and offer compelling opportunities.
Frequently Asked Questions
What is Gautam Shah's outlook on the Nifty?
Gautam Shah believes the Nifty could move towards 26,200 before a fresh review, and he advises investors to stay bullish.
Which sectors does Shah think will lead the market?
Shah believes the financial sector, including banks, NBFCs, insurance, and housing finance companies, will lead the market for the next three to six months.
What are the emerging sectoral themes according to Shah?
Shah highlights metals, real estate, and PSU stocks as the emerging sectoral themes, with metals and real estate offering significant gains and PSU stocks remaining undervalued.
How has the market performed recently?
The Nifty recently went through a period of healthy consolidation, which helped build a higher base, and it has since accelerated momentum after crossing the 25,200 mark.
What factors are expected to improve earnings?
Shah expects earnings to improve due to signs of economic improvement, positive commentary from corporate India, and recent measures by the RBI.
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