IT and banks lead expert’s market recovery view

Go India Stocks founder Rakesh Arora said market earnings could grow 16-20% as valuations remain supportive and the recovery broadens. In an interview with Zee Business on 18 Oct 2026, he identified information technology and banking as preferred sectors, while saying steel stocks looked more attractive than base-metal companies over the next one to two quarters. 💻💼

Arora said the market had the ingredients for a sustained recovery but remained dependent on foreign institutional investor sentiment. He described the environment as being “on liquid oxygen”, with FII selling capable of limiting upside even as improving earnings provide support. A slowdown in FII outflows and lower crude oil prices were identified as the key conditions that could improve market sentiment. The comments are sector-level views rather than company-specific recommendations.

OI Charts data showed the banking benchmark at ₹55,844 on 16 Oct 2026, up 0.06% for the session and 1.1% over five sessions. Its 52-week range stood between ₹53,786 on 29 Sep 2026 and ₹56,671 on 22 Sep 2026, with volume of 572,328,313. The broad-market benchmark closed at ₹23,146, up 0.65% on the day and 2.8% over five sessions, while volume was 391,557,143. Its 52-week range was ₹22,180 to ₹23,489. 📈

For traders, the next signals are the direction of FII flows, crude oil prices and upcoming earnings commentary from IT and banking companies. The banking benchmark’s recent 1.1% five-session gain and the broad market’s 2.8% rise indicate that sentiment had improved into the latest available session, but both remain below their recent 52-week highs. Steel performance relative to base metals will also test Arora’s sector preference over the next two quarters. 🏭

Source: Zee Business, 18 Oct 2026

Not investment advice. For informational purposes only.