India’s stock market may experience a period of consolidation in the near term, according to Lyn Alden, Founder of Lyn Alden Investment Strategy.

Alden, who places India “somewhere in the middle” of her global investment priorities, recognises the country’s strong fundamentals but remains cautious due to current valuations and recent earnings downgrades.

“Right now, I probably expect consolidation as a base case,” she explained, adding that while she sees potential for long-term growth, India’s immediate trajectory may remain subdued.

Alden specifically highlighted the financial sector as a relatively attractive segment within the Indian market.

She noted that valuations in this sector could present opportunities over time, even as the broader market stabilises.

“I tend to like the financial sector a little bit more than other sectors,” she stated, noting that India’s growth appeal makes it more of a “growth play” than a value investment.

Despite India’s strong fundamentals, Alden noted that near-term headwinds—such as recent earnings disappointments and higher-than-expected inflation—could temper investor enthusiasm.

The influence of a strong US dollar, she added, is also pressuring emerging markets like India

Also Read: India a long-term bet for investors, says Knight Frank’s William Beardmore Gray

Among other markets, Alden’s top picks for value investments are China and Brazil.

However, both the markets come with higher risks, making them less predictable.

Also Read: India’s CPI inflation spikes to 14-month high of 6.2% in October

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