Ajay Srivastava, CEO of Dimensions Corporate Finance Services, recommended investors balance their portfolios and get into fixed-income segments. "Non-MNC consumer stocks I think those are the first ones which will keep falling till they come to a peak of 2025," he said.
"In FY24, earnings growth is expected to be in low to mid-teens and valuations are at fair levels from a 10-year average perspective. Markets will take cues from a few key events."
Valuations have moderated over the last 18 months, and have reached close to long-term averages. While being an election year, markets are likely to see elevated volatility. "In FY24, earnings growth is expected to be in low to mid-teens and valuations are at fair levels from a 10-year average perspective. Markets will take cues from a few key events."
In India, the IT sector had sold off on fears of a severe US recession, but it now appears that this will not occur. Accordingly, the Indian IT sector has started showing signs of recovery. India is doing well and would continue to do well. Despite a possible decline in growth rate, we would still be the fastest growing economy of the world. Capex will be the key.
Large and larger mid-caps IT companies are better positioned at current levels and any further volatility in this segment could warrant increasing allocation as risk to reward could turn attractive.
Healthcare is a better space for an unlisted player than listed players, but if we see healthcare as a space on the listed side we still believe it#39;s not cheap, as the competition is getting heavier and heavier.
Sachin Shah believes this is clearly a bottom-up market. Interestingly, he prefers private defence companies over state-owned companies.
InCred PMS believes that profitability in healthcare sector is likely to improve over the next 4 quarters with raw material prices are stabilizing/coming down.
MOFSL expects Q4FY23 earnings to grow 10-11 percent for Nifty. FY24 earnings will be led by some rebound in commodities earnings as well as continued strength in BFSI and Automobiles. MOFSL expects Q4FY23 earnings to grow 10-11 percent for Nifty. FY24 earnings will be led by some rebound in commodities earnings as well as continued strength in BFSI and Automobiles.
The inflation and interest rates are nearing a peak, India is in an election year with efforts of the Government to demonstrate visible progress on the ground to close out its last year of two terms with a bang.
The effect of global slowdown will lead to some pressure in the overall corporate earnings growth, particularly for the companies which are linked to USA and Europe markets. However, impact for Indian corporations is likely to be limited as many sectors are getting benefit from China 1 and Europe 1 policy.
After the results of quarter three by most of the companies, shares have not reacted with volatility to results, so one can say as for now the price digested the current concerns.
Equity market cannot thrive long on K-shaped economic recovery. However, having said that, we are seeing improvement in mass consumption levels which is a positive sign, said Shriram Life Insurance Company#39;s CIO Ajit Banerjee
An ending diagonal pattern on the price chart signals the end of the bull market that began in 2020, he said.
Global markets are factoring in the probability of a recession in the near term, says Alok Singh, Chief Investment Officer at Bank of India Mutual Fund. The global markets are working with high probability of recession in near term. In case these recessionary fear get abated then market may witness enthusiasm coming back.
New-age tech stocks have specific challenges which vary from one tech company to another. However, with the correction in prices over the last year, these stocks have become relatively attractive.
In second half of FY23, on account of pent up demand and normalisation of margins we will see earnings growth kicking in which can act as a trigger for new leg of rally for the market.
The rate hike concerns keep coming and going over the last few quarters. It seems that the market has made up its mind that rates have peaked, whereas the Fed is particularly insistent that their mandate to control inflation is paramount.
Naveen Chandramohan has maintained that auto ancillaries (especially around B2B Manufacturing) is a theme that has a significant (3-year) runway ahead of growth and this certainly looks attractive to me with growth being sticky (B2B driven).
Q3FY23 earnings of Nifty-50 stocks reported till now have been broadly in line with estimates. Sector-wise, metals, oil gas and FMCG were the major losers, while banks, PSUs and IT services were the major gainers. Q3FY23 earnings of Nifty-50 stocks reported till now have been broadly in line with estimates. Sector-wise, metals, oil gas and FMCG were the major losers, while banks, PSUs and IT services were the major gainers.
The current market backdrop of relatively higher interest rates and broad-based economic growth suits the value style of investment, says Christy Mathai, Fund Manager- Equity at Quantum Mutual Fund.
Given the backdrop of the rural economy also showing signs of recovery and the big city demand being more or less consistent, there is a reason to believe that FMCG should have a better story going ahead in the next two to three years.
"Banks are at the peak of their health in terms of asset quality and in a tight monetary environment continue to flourish. Credit expansion theme seems to be continuing and the earnings have been spectacular," said Sonam Srivastava, Founder at Wright Research
Badrinivas#39; comments come in the backdrop of China opening up and foreign institutional investors (FIIs) being bullish there amid pent-up consumption and India#39;s higher valuations.
The biggest catalyst for our markets will be the US Fed commentary regarding inflation and when they actually pause or pivot in the interest rate tightening cycle.
The infrastructure, IT and banking sectors will propel the index past the 19,000 mark, says Jain.
Karma Capital believes that the government has delivered on all counts of capex, consumption and credit.
IT companies#39; results have generally met or exceeded expectations, as they have been successful in preserving margins.
Constant capex spend in rural areas, removal of tax benefit for new life insurance policies and short-term capital gains tax on market-linked debentures are the three negative factors, says the Managing Director - Portfolio Management Services.
Sivaram, the Investment Director of Enam Holdings, does not see any issue with regard to the banking sector’s infrastructure lending to the Adani group or any other group.
Infrastructure continues to remain as the most solid theme in the budget. Allocation to railways has also seen a sizeable jump against last year.
