Stay invested in high-quality businesses to generate outsized returns over the long term, and any correction in the markets should be used to add high-quality names to the portfolio, says Co-Founder and Chief Investment Officer of Enam Asset Management Company.
Bhasin believes that a bit of an upside is yet to be seen in the stock market where the Nifty may hit 18,800-18,900 points.
Real estate stocks have been badly bruised in 2022, despite demand being strong as liquidity tightened. With liquidity tightening peaking out, it#39;s worth looking at the sector.
Indian growth is likely to see a seasonal slowdown post the bumper festive season of 2022. It is also likely that some brushoff from global growth slowdown will impact Indian economic growth.
With most of the headwinds receding in the rear-view mirror, Modi expects the tailwinds to continue and things to get better. He feels the earnings trajectory is solid and there#39;s little downside risk over the next 12-18 months.
India can benefit from a recession-led fall in commodity prices. Achieving the RBI growth estimate for FY23 could be seen as a better-than-expected outcome given the current uncertainties, says Sameer Kaul of TrustPlutus Wealth
JamaWealth founder-CEO Ram Kalyan Medury also said that after the recent flurry of activity, even the primary markets could mellow down due to the global macro situation
The key financial metrics like NPA are likely to continue to improve in the rest of FY2023, backed by strengthened balance sheets and an improving credit demand outlook, especially for working capital, Arun Malhotra of CapGrow Capital says.
On November 24, the Nifty 50 reported a record closing high of 18,484 and now remains 120 points away from its previous record high of 18,604.
There is no known event that will keep markets volatile — the data and facts point to an optimistic situation for the markets, says Vikas V Gupta of OmniScience Capital.
Talking about the banking sector, Duggad mentioned that investors saw good performances from both public and private sector banks, at a time when global markets have been struggling on several fronts.
Green Portfolio is positive on banking sector but is also closely watching the macro developments as this sector has a high correlation to the macro developments.
The most important factor that drives the markets in the short term is liquidity. Domestic liquidity has been extremely strong and our stock markets have done relatively well compared to other MSCI emerging markets, despite the relentless FII selling.
With the dollar peaking, and the chances of a US recession not low, global funds will want to allocate more to emerging markets. India should be at the top of their list.
Jain believes in BBC, or Bhav Bhagwan Che — a Gujarati saying that means price is God — for the price of a stock can capture the mood of the market towards that stock or sector.
Upside risk to inflation momentum cannot be discarded all together and can arise from supply concerns in food, wide trade deficits and rising services inflation, but with a slightly lower probability.
Earnings trajectory would be key determinant of growth-related price movement, especially in an uncertain macro environment.
Taher Badshah is positive on banks doing well, provided deposits grow and credit growth momentum is maintained
Despite the upcoming investments in 5G, the sector is witnessing a strong shift in its FCF generation capability that could translate into healthy deleveraging. Despite the upcoming investments in 5G, the sector is witnessing a strong shift in its FCF generation capability that could translate into healthy deleveraging.
Anand Rathi Group is positive on financials, information technology and investment theme-related sectors such as capital goods
The ace investor said the biggest learning that one can take from the market is how to compound money.
The less likely scenario is that the index breaks through at 18,600. If that happens, Nifty will head to 27,000, the market veteran tells Moneycontrol in an interview. The ace investor said the biggest learning that one can take from the market is how to compound money.
Technology is the sector which has corrected all the excesses of post covid era world and now is very attractively valued.
Overall, the Q2 results have not seen any material downgrades in consensus earnings estimates of Nifty EPS for FY2023 FY2024, says Gaurav Dua of Sharekhan by BNP Paribas.
Arpit Agrawal finds manufacturing promising, as also the defence sector, besides banking and financials, and speciality chemicals. He looks at businesses which have long-term growth opportunities.
According to Jain, US inflation seems to have peaked two months back. Going forward, each inflation number could see some downtrend.
The Envision Capital CEO says commodities have peaked and the opportunity should be used to exit. "These are not investment candidates and therefore, should not be part of a portfolio," he says
Having a bit of insurance stocks in the portfolio across life and health makes sense in the given scenario, with massive under penetration and growth story for the industry.
The economy is on track as India is well positioned in terms of managing inflation and rising interest rates, says Aniruddha Naha, head of equities at PGIM India Asset Management
Apart from the financial services sector, Karwa believes digital manufacturing also seems to be performing well with the capex cycle picking up and recommends investors to further invest in the sector.
Samco#39;s research head says the Nifty will also hit the peak soon. Prices have given a break-out on a broader time frame and oscillators and indicators are showing a strong uptrend by the end of FY23 for the index, he says Divam Sharma of Green Portfolio believes that the volatility will continue in 2023 also, as we need to still see the impact of high interest rates, recession in some developed economies and continuation of geopolitical tensions. Samco#39;s research head says the Nifty will also hit the peak soon. Prices have given a break-out on a broader time frame and oscillators and indicators are showing a strong uptrend by the end of FY23 for the index, he says
The challenges in the stock market are more from the context of rich valuations, especially when most other asset classes globally are below their 25-year average valuations, said Krishnan
Wood mentioned that the Indian stock market has shown phenomenal resilience amid global headwinds and significant monetary tightening cycle by the central bank.
The earnings growth today being priced in is at a CAGR of 15 percent over the next 2 years and I believe we should see that materialize with positive tailwinds in pockets.
Consumption surged this festive season, and in a moderate inflationary environment, Srivastava expects autos, electronics, and consumer discretionary spends to continue to be strong. Amrit Kaal is a multi-decadal theme which is robust given its relative independence from broader economic situation. It is driven primarily via government spending on physical and digital infrastructure projects in the initial stages.
Holland mentioned that increased hiring freezes and layoffs across the technology sector globally, including by companies such as Apple and Amazon, are going to negatively impact Indian markets as well
The zero Covid policy in China has created an opportunity for India to emerge as a preferred destination in global manufacturing. India is better placed than most countries on the geopolitical stability front.
Contract research and manufacturing can remain a long-term secular growth opportunity for India since the sharp rise in global demand in this space for Indian players is positive.
Desai also believes that India could account for 20 percent of the growth that world will generate over the next 10 years.
"Even if the market were to touch record highs, it will continue to be treated as a large bull market correction," Jai Bala told CNBC TV18 Market veteran Arun Malhotra continues to be bullish on large and a few small private sector banks as compared to public sector banks.
