Markets opened strong on the fifth consecutive day of gains, with Nifty reclaiming 25,900 and eyeing 26,000, up 280 points. Sandeep Bansal, Deputy CIO at ASK Investment Managers, remains cautiously optimistic. Q2 earnings met muted expectations (5-6% growth) amid US tariffs, GST changes, and excess monsoons, yet corporate commentary stays positive. FY27 earnings may hit low-to-mid teens. FIIs returned in October; domestic flows remain robust. Valuations at 21x forward earnings are fair, not cheap. Large caps lead the rally; mid/small caps turn stock-specific. ASK overweight on private/PSU banks, autos, telecom, cement, and infra-capex, expecting margin expansion and volume growth. Key triggers: US trade deal resolution, government infra push, and private capex revival.

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