Anil Sarin of Centrum PMS says India has always been an expensive market, but this is justified due to attractive historical stock returns and higher earnings growth.
"In absolute terms, the sectors that are leading the private sector capex charge are metals, power, telecom, cement, autos, oil gas, and IT."
Some of the PSU stocks, especially from the defence space – Bharat Electronics, Bharat Dynamics, and Hindustan Aeronautics – have gained 80-120 percent in the last one year. The rally has also spilled over into PSU banks and energy names.
Last week, US Fed chairman Jerome Powell in an extremely hawkish speech said the Fed will keep raising rates for a while as inflation has not come down to comfortable levels. Following his comments, shares fell like nine pins across the globe Last week, US Fed chairman Jerome Powell in an extremely hawkish speech said the Fed will keep raising rates for a while as inflation has not come down to comfortable levels. Following his comments, shares fell like nine pins across the globe
Sahil Kapoor of DSP Mutual Fund says earnings growth and high frequency data suggest that equity markets may remain resilient for the time being. Sahil Kapoor of DSP Mutual Fund says earnings growth and high frequency data suggest that equity markets may remain resilient for the time being.
A. Balasubramanian, CEO, Aditya Birla Sun Life Mutual Fund, says that he is bullish on the Indian economy, not just because of global shifts, but also inherent demand. A. Balasubramanian, CEO, Aditya Birla Sun Life Mutual Fund, says that he is bullish on the Indian economy, not just because of global shifts, but also inherent demand.
The macro environment, however, will continue to add an element of volatility in the market, says Kristal.AI founder and CEO Asheesh Chanda
Pradeep Gupta believes that the biggest hidden opportunity is in remaining invested in equities in the face of near-term negative market sentiments and corrections.
Market experts in India said that the US economic data will need to be watched closely from now on
The Nifty Index has rebounded by 16.5 percent since mid-June, while the MSCI India Index has outperformed the MSCI AC Asia Pacific ex-Japan Index by 16.5 percent since late June, noted Wood.
Equity investors should diversify portfolios, cut leverage and apply more prudent and more defensive strategies because the valuation comfort has faded after an almost 15 percent rally from the recent lows in the past few weeks.
Semiconductor supplies have returned to normal and prices of key raw materials like metals are off 30-40 percent from their recent highs, relieving margin pressure on auto companies.
In his opinion, investor anguish over interest rate hikes by the US central bank may end soon.
Markets across the globe have rebounded in the past month from their lows as inflation has started to cool off a bit. However globally we are still not out of woods as far as rising interest rates slowing economies growth is concerned.
In light of receding liquidity and precarious geo-political backdrop globally, Elara expects equity markets to consolidate in next few months. Hence, they may remain rangebound, albeit at a larger range, like they have been since start of CY22.
Stock picking may not work in defense sector, which is one of his picks, but buying a basket of private and public sector players is a good idea, said the market expert
"If there#39;s a rally, you should probably switch out from large-cap names and get into tier-2 names. It#39;s quite possible that in next 2-3 years some of the names from midcap space will emerge to be strong performers," said Nilesh Shah
A multitude of factors will decide which way the market goes but the rally is slowing down and the equity benchmarks are facing stiff resistance at their present levels A multitude of factors will decide which way the market goes but the rally is slowing down and the equity benchmarks are facing stiff resistance at their present levels A multitude of factors will decide which way the market goes but the rally is slowing down and the equity benchmarks are facing stiff resistance at their present levels
Dollar index has given breakout above 104 levels and sustaining above it. After recent correction, it is again seeing momentum and can move towards 114-115 levels in short to medium term and can possibly head towards 120 in the long term.
He sees rupee moving to 83-85 levels
After a corrective dip to 17,350-17,400, the market could rally to 19,500 in six to eight months, he said
India is likely to be the fastest growing economy in FY23 with almost zero chances of recession. Hence, they are putting money in India considering it is a much safer bet currently compared to other markets.
The divergence between China and other emerging markets will also start to close as the slowdown in the world’s second-biggest economy spreads out to its closest trading partners, such as Korea and Malaysia The divergence between China and other emerging markets will also start to close as the slowdown in the world’s second-biggest economy spreads out to its closest trading partners, such as Korea and Malaysia
After this 18 percent rally in the last two months, I believe the market will take a pause. From now onwards Global cues will decide the direction of markets.
India is among the strongest economies in the world and is likely to remain so in the near and medium-term future.
With a strong across-the-board rally, there will probably be a pause and a case for profit booking before the market decides on how the upcoming festive season demand would unfold.
India has been clocking 7 percent plus rates in the past and there is no reason why our country cannot continue to deliver such a growth rate over a longer period. India has been clocking 7 percent plus rates in the past and there is no reason why our country cannot continue to deliver such a growth rate over a longer period. India has been clocking 7 percent plus rates in the past and there is no reason why our country cannot continue to deliver such a growth rate over a longer period.
My main theme is to keep it simple. If you follow, simple Gandhian rules of living to invest, investors would be on a path of financial freedom.
The 6.5-7 percent is doable for FY23. FY24 growth will depend a lot on how recession or slower growth shapes up in US / developed world. A lot of probabilities out here.
The future trajectory of FII flow, to a large extent, depends on the inflation in US and in India. Higher interest rates in the US typically lead to flows moving to the world#39;s largest economy, resulting in the strengthening of the US dollar at the cost of emerging markets like India.
Markets are trading at slight premium to long term averages on FY24 consensus earnings. Hence it should consolidate at current levels before resuming the uptrend.
Except for resource companies, i.e. producers of commodities and crude oil, most of the other sectors should report strong revenue and earnings growth over the next several years. Demand is likely to remain strong in the near to long-term for Indian companies.
We believe a lot of companies in the small and mid-cap space are ready to outperform, given that they’ve completed or are close to completing their capacity expansions, are sitting on lean balance sheets, generating healthy cash flows and are trading at reasonable valuations post the correction. We believe a lot of companies in the small and mid-cap space are ready to outperform, given that they’ve completed or are close to completing their capacity expansions, are sitting on lean balance sheets, generating healthy cash flows and are trading at reasonable valuations post the correction. We believe a lot of companies in the small and mid-cap space are ready to outperform, given that they’ve completed or are close to completing their capacity expansions, are sitting on lean balance sheets, generating healthy cash flows and are trading at reasonable valuations post the correction.
The pharmaceuticals sector has witnessed a sharp correction and quality stocks in the sector are available at compelling valuations.
Markets work on expectations, and with commodity prices cooling off and global inflation contracting, equity investors are buying on the expectation of an economic recovery.
