2026 Investment Outlook: Varun Saboo sees opportunity in financials, FMCG and Real Estate

When asked about attractive investment themes for the coming year, Saboo said, “Honestly, we are very-very positive on the markets. If you recall, the last time when we came on to your show we were extremely positive on Indian IT and that theme has played out quite well. Going forward, what is looking very good to us is the banks across the BFSI space actually and also, we are very positive on consumers. No, we were very positive on the discretionary consumer space which we still remain, but incrementally we are getting positive on certain FMCG names also. There has been this GST cut which has clearly shown how growth is panning out to be in auto names particularly that we saw. We are very-very sure on things would reflect in the consumer pack also. But the categories have to be nascent where you have new-age portfolios, where you have unpenetrated categories, that is where one should focus on. The couple of names which we like over there are Godrej Consumer and Marico which we will be very positive on and apart from that as I mentioned to you we are very positive on financials as a space. We will be quite positive on Axis Bank, Kotak Mahindra Bank from here.”

The conversation then shifted to consumer discretionary goods, especially white goods, which have been affected by erratic weather patterns.

Saboo noted, “Nowadays all seasons have been quite severe. It is not only to do with monsoon or with winters. But we need to keep in mind these are great stories over a period of time. Penetration in the country in terms of white goods is also quite low. Near term yes, probably a quarter or two the stocks might not be in favour, but I really think that you have these plays as a great long-term play. Summers again could be harsher. Eventually whenever there is a lull which is right now there is a good time to accumulate these names because the stocks are coming at a big-big cut. You mentioned about PG Electroplast, the stock is already down severely from its highs. If you do not accumulate them now, then when. I would seriously think there is a great time to accumulate these names.”

On the real estate front, Saboo highlighted robust demand and a continued upcycle in the sector.

Live Events

“See, real estate as a space if you see they generally have a seven-eight year kind of upcycle. The cycles last longer. It has been about three-four years of good cycle that we have been in. Plus, if you see when we talk about inventory how things have been. If you really go out searching for inventory, say, in the commercial space, you are hardly getting any. There is a crazy rally happening in commercial rates that we are seeing. In terms of residential also the ones which one actually wants to buy is not available easily. So, there is a lot of demand,” he said.
“Obviously, it has to do with a lot of wealth creation which is happening in the country. If you see, all the asset classes be it gold, silver, even equities to an extent have been in a good run for a long time and all these things help when it comes to real estate demand. Real estate still looks to be a very attractive space with a 12- to 24-month view. I would still think that all of these names are looking good to me in this space,” he added.With banks, FMCG, consumer discretionary goods, and real estate emerging as key focus areas, Saboo’s outlook signals opportunities for investors seeking both growth and long-term value in the Indian market.