The single largest driver of markets would be liquidity. Interest rate movement, more specifically market expectations about monetary policy, will be dominant theme for 2023.
Renewable power, electric vehicle ecosystem and sectors that have seen PLI benefits could drive the capex push, says the fund manager.
The pandemic year saw the entry of a lot of new investors, who saw the market change from trending to consolidating. Veterans share lessons on how to navigate such different environments.
"We do think 2023 should be a good year. But we must be extremely mindful of what we buy. It’s also important to know what to avoid," says Jiten Parmar of Aurum Capital.
In a freewheeling interview with Moneycontrol, Sanjeev Prasad, Managing Director and Co-Head, Kotak Institutional Equities gave a detailed breakdown on why he foresees consumption registering a pronounced slowdown, growth levels plummeting further and why lagging public investment spending is the missing piece in the larger picture of India Inc’s growth narrative
The big headwind for the market in 2023 will be elevated volatility. This is on account of multiple factors most notably the central banks.
Talking about India, Holland mentioned that the upcoming Budget for 2023-24 will also provide cues for the stock market
Budget has lost its relevance of single point big bang announcements. Government continues to focus on growth and reforms even outside the Budget. I expect the growth and reform led focus of the government to continue in upcoming budget.
From sectoral perspective we are positive on banks, auto, cement, defence, utilities and capital goods, says Ajit Banerjee of Shriram Life Insurance,
Pharma and Healthcare stocks have done well over the past few days on expectations that these will do well if India sees another large wave of Covid.
The biggest learning from markets in 2022 is the virtue of humility and importance of developing conviction, says Anand Dalmia of FIsdom.
His investing tip: "… we live one month, one week, one year at a time and that#39;s how we really have to play our innings. It#39;s like cricket."
With RBI, too, pausing further rate hikes in FY24, and, with high likelihood, maintaining or reducing interest rates, the rural demand should actually increase. His investing tip: "… we live one month, one week, one year at a time and that#39;s how we really have to play our innings. It#39;s like cricket."
With a strong economy and sustained flows, Rajiv Shastri of NJ AMC expects the Indian equity markets to perform very well in the coming years.
India will continue to attract FDI in IT, services, automobiles, energy, and infrastructure, says Shailendra Kumar of Narnolia Financial Services.
Fineman believes India will turn out to be stronger compared to other markets in the current global environment
The best strategy for retail investors would be systematic allocation to equities, setting themselves up to reap the rewards of an eventual recovery post the current correction phase, says the Chief Executive Officer and CIO of Athena Investments.
Harshad Patil of TATA AIA Life sees sustained pressures in IT sector revenue growth, given the global slowdown and the expectations of a dip in global deals for Indian IT companies.
Naveen Chandramohan of ITUS Capital believes that the market will offer interesting opportunities to deploy capital in the first half.
Banks have come up strong with rising credit growth and much more robust balance sheets, and they will flourish in a rising interest rate environment.
In this episode of The Week on Dalal Street, CNBC Managing Editor Anuj Singhal tells Santosh Nair that the market trend may have reversed and the Nifty could fall another 6-8% from current levels.
"So we think that the economy is a lot closer to the pre-pandemic path than what even official data is suggesting," he said
As suggested by the US FED and its dot chart, another 50-75 bps hike during 2023 can be seen, as consumer inflation is still well above their objective of 2 percent.
Upgrading Indian equities to #39;benchmark#39; from #39;underweight#39;, Credit Suisse said there is a scope for a growth of up to 14 per cent on the benchmark indices. The risk factors continue to be dependence on imported energy, reliance on foreign capital and a slowing global economy, the foreign brokerage said
"Despite newer highs, euphoria is still a distant phenomenon for Indian indices. One of the reason for such cautious optimism is due to FOMC stance to raise interest rates at a galloping pace"
"India is better placed compared to other advanced and emerging economies supported by government policies that are tailwinds for growth in multiple sectors."
The year 2023 has certain novel challenges for equity markets. The first one being the newly enforced lockdowns in China which can lead to supply chain issues and another possible Covid surge.
Some of these stocks have all that an investor can ask for, viz., capital efficiency, visibility of earnings growth, and moderate leverage.
Raghvendra Nath of Ladderup Wealth Management expects FII flow to increase over the next year considering the opportunity that Indian markets provide to investors.
He feels that the capital goods and defence sectors look promising on the back of government reforms, while IT will be dependent on the growth of the US and European markets
The bond markets are definitely in a kind of a sweet spot right now, many market participants have an opinion that either we are already at the peak of the rate cycle.
Vora expects growth to slow down in the Indian IT services space but he is bullish on the FMCG sector
In the second half of 2023, there could be an interest rate cut in the US that could take place giving room to RBI for interest rate cut in India as well.
Asia seems better positioned in 2023 than the West and hence the flows should remain reasonably supportive for emerging markets (EMs), especially when the US dollar is starting to see some weakness
Soni says Indian equity is one of the best asset classes for long-term wealth creation. Equity, however, by nature, is volatile in the short term and to create wealth, one needs to stay invested through market cycles
From a valuation standpoint, sectors like financials, consumer discretionary like autos, and technology offer pockets of value, says Mehta
Nishit Master believes Indian markets will continue to do well in 2023 as India remains the fastest-growing major economy of the world in an environment where growth is slowing everywhere else, including in the US, Europe, and China.
Ambit Asset Management is keenly evaluating sectors such as software, pharma and select discretionary where value is emerging. says Bhansali
Piyush Garg of ICICI Securities is bullish on the telecom space but cautious about mid-sized and product-based IT companies.
Manish Sonthalia believes the bull run in Indian equities will continue moving forward and market performance will get stronger moving forward.
A developed market recession could negatively impact the revenues of India#39;s services sector, where the urban affluent population is employed, dampening the consumption sentiment, he says.
