Expert Panel at BFSI Insight Summit 2026 Emphasizes Value Investing and Rigorous Stock Selection

At the recent Business Standard BFSI Insight Summit 2026, industry experts discussed the continued relevance of value investing in the Indian equity markets. While identifying undervalued opportunities has become more complex due to divergent market valuations, panelists stressed that the core principles of investing—comparing a company's intrinsic value to its market price—remain essential for long-term success.

Core Investment Principles

• Intrinsic Value vs. Market Price: Rajeev Thakkar (PPFAS Asset Management) argued that the distinction between value and growth is often a matter of labeling; true investing requires calculating intrinsic worth regardless of the sector.
• Cyclical vs. Structural: Prashant Jain (3P Investment Managers) highlighted the importance of distinguishing between temporary market pessimism and permanent business deterioration, noting his own experience with public sector banks.
• Portfolio Balance: Lakshmi Iyer (Bajaj Alts) emphasized that value principles should be applied across both equity and fixed-income portfolios to optimize incremental returns.

Market Dynamics and Valuation

Panelists observed a significant divergence in valuations between large-cap and smaller-cap segments. Thakkar noted that large-cap companies still account for the majority of profits among top-listed firms, warning investors not to ignore these "staples" of a portfolio in favor of smaller stocks that may currently be over-concentrated. Jain added that while opportunities exist in small and mid-cap stocks, they require highly selective research.

Emerging Technologies and AI

The discussion also covered the impact of artificial intelligence on investment strategies. Experts cautioned that AI-related valuations must be assessed based on local market contexts. Unlike the US, where investment is heavily weighted toward foundational infrastructure, Indian AI activity remains focused on applications. Panelists advised investors to prioritize companies that demonstrate a clear, credible path to profitability rather than relying solely on sector hype or price discounts.