Negative impactResults
ETMarkets Smart Talk | AI, defence, power: Investors need to be selective as valuations turn expensive, says Aditya Khemani
Economic Times 1 hr ago·14 Sept 2026, 3:00 am
Aditya Khemani, Head of Equities at Invesco Mutual Fund, has advised investors to exercise caution and selectivity in the current market environment. He warns that while the Indian market is supported by strong domestic liquidity, the valuations for many sectors have become stretched. Investors should be careful not to mistake a company's strong earnings momentum for long-term business quality, especially if there are underlying red flags like weak cash flows.
This matters to investors because it highlights the risk of paying a premium for growth without proper due diligence. Khemani suggests that a focus on fundamentals and reasonable valuations is essential for navigating this phase. He advises looking at the long-term economics of a business rather than just short-term price movements.
What to watch next is how the market reacts to earnings reports and whether valuations continue to climb. Investors should keep an eye on sectors like AI, defence, and power, but ensure they are investing in companies with solid business models and sustainable growth prospects.
Excerpt from Economic Times
Aditya Khemani, Head of Equities at Invesco Mutual Fund, believes investors need to be particularly selective at this stage. He cautions against confusing strong earnings momentum with business quality, especially when red flags such as weak cash flows or stretched valuations are overlooked. While India’s growing…Read the original at Economic Times
Key takeaways
- Category: Results.
- AI reads the tone as negative (potentially bearish) for the stock.
Why it matters
A routine update. The tone is negative — watch for downside reaction. Use the price and stock snapshot to gauge how the market is responding.
