'Nifty doesn’t capture changing trends...': Compcircle’s Gurmeet Chadha urges investors to focus on asset allocation over noise

In the world of investing, picking the right stock is just part of the puzzle. Equally vital is understanding where the broader economy is headed and ensuring that your capital is spread smartly across different assets. This dual approach — asset allocation combined with a macroeconomic lens — helps investors sidestep concentrated risks and ride long-term trends, instead of getting caught in short-term market noise.

Highlighting the urgency of this mindset, Gurmeet Chadha, Managing Partner & CIO at Compcircle, emphasized, “Nifty of today doesn’t capture changing trends.”

In a recent post on X (formerly Twitter), Chadha pointed out, “Nifty of today doesn’t capture changing trends. Every nation wants to now focus on domestic economy - manufacturing, defence, more jobs at bottom of pyramid. US has categorically spoken about Main Street over Wall Street.”

He added, “Nifty today is 45-50% banks & tech. It’s overweight services n consumption. This will change over next 5 years. FIIs also in their buying n selling are showing that trend if u deep dive.”

Cautioning investors, Chadha stressed the need to go beyond individual stock selection: “Stock picking is always imp but it’s imp to see where govts are spending, giving incentives n PLIs etc to get asset allocation and big macro picture right !!”

Meanwhile, markets have shown strong momentum. The Sensex surged 4,706 points over the last four sessions, buoyed by US President Donald Trump's 90-day tariff pause and signs of a trade deal with China. The Nifty also added 1,452 points since April 9, the day Trump announced the exemption for trading partners other than China. The tariff move sparked a 4.5% rise in both indices, marking their strongest weekly gain since February 2021.