Top Stocks to Buy in 2025 - Neeraj Dewan’s Sector Rotation Strategy & Domestic Picks

Despite escalating tensions in West Asia, the Indian market has shown impressive resilience. According to Neeraj Dewan, this strength stems from expectations of a quick resolution and relatively stable oil prices. However, he advises investors to remain cautious, given the uncertainty of the global situation.

Sector Rotation: Where Dewan Sees Value in 2025

Dewan continues to favor themes tied to India’s domestic consumption and economic recovery. He highlights sectors such as:

• Infrastructure & Capital Goods
• Banking & NBFCs
• Housing Finance Companies

With low inflation and favorable interest rates, consumption demand is likely to rebound. Additionally, FMCG and staples may benefit from a positive monsoon outlook and subdued inflationary pressure.

Chemical Sector: Time to Stay or Exit?

While the chemical sector has seen significant recent gains, Dewan maintains a positive long-term view. He recommends holding high-quality stocks like SRF and fluorine-based chemical companies, given their seasonal demand trends. However, he cautions that new entries may not be attractive due to stretched valuations.

Defense & Shipping: Long-Term Opportunities or Overheated Bets?

Dewan remains bullish on defense stocks such as BEL and HAL, citing consistent government allocations and export potential. Although short-term corrections are possible, the sector continues to offer solid long-term growth prospects.

In the shipping space, Dewan favors Mazagon Dock and Garden Reach for their structural potential. Conversely, he is cautious on SCI and Cochin Shipyard, warning that recent price spikes might reverse if geopolitical tensions ease.

Biocon: Signs of a Recovery?

Biocon has garnered investor attention due to easing regulatory hurdles and a recent QIP (Qualified Institutional Placement). While the capital infusion supports short-term sentiment, Dewan emphasizes that long-term performance will hinge on fundamental improvements and the profile of institutional investors involved in the QIP.

Asian Paints: Opportunity or Overhang?

With Reliance recently offloading its stake in Asian Paints, investor sentiment is mixed. Dewan sees potential for a short-term rebound following recent corrections but remains cautious on the medium-term outlook. He notes that price wars and increased competition could limit upside. However, long-term investors familiar with the stock may consider gradual accumulation at current levels.