Vikas Gupta of OmniScience Capital notes that equity market focus has shifted from geopolitical tensions to economic fundamentals. Investors may prioritize earnings growth over oil price volatility. While IT services face uncertainty due to AI, sectors like asset management and banking show long-term promise despite valuation concerns.
Equity markets appear to be moving past the narrative of geopolitical conflict and oil price volatility, according to Vikas Gupta, CEO and Chief Investment Strategist at OmniScience Capital. As of July 14, 2026, the focus for investors is increasingly directed toward core economic drivers, specifically revenue and earnings performance, rather than immediate global headlines.
Sector Trends and Valuation Shifts
The IT services sector continues to face structural questions as artificial intelligence begins to reshape traditional business models. The industry's historic reliance on the revenue-per-employee metric is under pressure because automation could significantly lower the manpower needed for projects. This transformation makes it difficult for market participants to project future earnings, leading to a cautious stance on valuing these companies until the long-term impact of AI becomes clearer.
Conversely, asset management companies are highlighted for their ability to generate cash. The structural growth in the equity portion of Assets Under Management remains a key point, with expectations of 10 to 15 percent annual growth even without significant new inflows. However, investors are advised to track the rise of index funds and exchange-traded funds, as these lower-cost products, combined with regulatory scrutiny over fees, could limit margin expansion in the future.
Banking and Market Outlook
The banking sector, spanning both private and public lenders, is currently supported by stable asset quality and steady credit demand. While private banks may show faster price movement in the short term, public sector banks might present opportunities for re-rating over a longer time horizon. Despite geopolitical swings, the primary market remains active, with the pipeline for initial public offerings expected to continue as companies adjust their timing to market conditions.
Regarding the broader market versus large-cap debate, while smaller and mid-sized companies may demonstrate higher earnings growth potential, current valuation levels suggest that large-cap stocks could provide more stable returns over the next three to five years. For investors, the ultimate monitorable remains the consistent growth of earnings across portfolios. As market conditions evolve, the challenge lies in balancing these growth expectations with entry valuations to ensure that long-term investment performance is supported by business fundamentals rather than temporary market sentiment.