New Delhi, Sept. 8 -- While the Indian stock market has been under pressure over the last two years, it appears extremely polarised now in terms of sector valuations. This could be the moment that can give rise to excellent medium-term alpha-generating opportunities, according to brokerage firm Nuvama Wealth Management.

Nuvama pointed out that investors may be extrapolating the recent cyclical earnings recovery into structural gains. However, the changing global macro, weak domestic income dynamics, and extreme valuation gaps between India and other emerging markets, between large caps and small and mid-caps, and between defensives and cyclicals rekindle memories of 2007, 2019, and 2024, when risk-reward flipped heavily in favour of cont...