Corporate India set for stronger H2; capex, defence, and housing finance in focus: Neeraj Dewan

Corporate earnings for Q2 have come in stronger than expected, lifting expectations for a more robust second half, says market expert Neeraj Dewan. With Q3 and Q4 traditionally being the strongest quarters for order flows and execution, Dewan is turning incrementally positive on capital goods, infrastructure and engineering names, where activity typically accelerates toward the year-end.

Dewan notes that earnings were muted earlier due to low expectations but are now showing signs of revival. “We are seeing an uptick, and Q3–Q4 should deliver better numbers,” he said, adding that order-heavy sectors should benefit the most.

Defence: A long-term wealth-creation theme

Despite stretched valuations after a sharp post-April rally, Dewan remains structurally bullish on defence, but only for patient investors. “This sector works for investors with a two–three-year view. Stick to the larger companies with strong execution,” he advised.

Companies like Mazagon Dock and BEML remain his top picks in shipbuilding and diversified defence exposure.

Ports: Adani Ports looks more attractive than JSW Infra

Talking about the logistics and port sector, Dewan highlighted strong execution and consistent delivery from Adani Ports, noting that the company has repeatedly met its EBITDA and debt guidance. While JSW Infrastructure holds long-term potential, its valuations look stretched in the near term.

Capital markets theme: Prefer CAMS, Kfin Tech, CDSL

Within capital markets plays, Dewan prefers infrastructure-driven businesses such as CAMS, Kfin Tech, CDSL and NSDL, which stand to benefit directly from India’s rising retail participation.
On Groww, he cautions investors after its steep post-listing rally: “Better to book profits after such a sharp run-up.”

Housing finance: Can Fin Homes, PNB Housing on the radar

With liquidity improving and the housing cycle gaining momentum, Dewan likes Can Fin Homes and PNB Housing, expecting stronger disbursement traction from December to March, one of the busiest periods for home loans.

Trade deal impact: Most quality stocks have already rebounded

On a potential India–US trade deal, Dewan believes the best buying window was when the initial 50% tariff shock hit markets. Stocks like Gokaldas Exports, Avanti Feeds, and Garware Hi-Tech Films have already bounced sharply from their troughs. However, he expects second-tier textile names to benefit once details of the deal are confirmed.

Market view: Stock-specific opportunities will drive returns

Dewan sees limited upside for broader indices and expects a more stock-specific market ahead due to high valuations, persistent FII selling, and moderate earnings momentum.

However, green energy, select banks, defence and housing finance remain pockets of opportunity.