BFSI valuations are certainly more attractive. Banks are in a robust balance sheet and credit growth cycle.
The Indian equity benchmarks are expected to open flat today, as trends in SGX Nifty indicate a muted start for the broader index.
FY23 has been a commotion, an emotional rollercoaster for retail investors, and a game of patience for institutional investors.
As the negative impact of rate hikes in compressed time is starting to surface in terms of banking stress, the record highs are looking a bit difficult for the index in the near term.
A relief rally may be possible after the market priced in US banking sector debacle.
Harshad Patil of Tata AIA believes that the heightened volatility is here to stay, at least in the near term.
Kotak Mahindra AMC remains positive on sectors deriving demand from domestic sources. These include large banks, capital goods, manufacturing and automobiles.
Real estate is an elephant and takes time to move. The sector has a lot of moving parts and it#39;s better to stay away, says Chaturmohta, Fund Manager-PMS Strategy-Apex, JM Financial Services
Some of the consumer facing companies have also seen valuation normalizing during the recent market corrections, the expert told Moneycontrol.
Earnings growth and variability of earnings remains the key risks to markets.
The major challenge for equities in FY24 remains interest rate path volatility. Implied Fed funds rate and hike probabilities have been swinging almost every day at an unprecedented quantum. Stocks tend to underperform during such an uncertain environment
The repercussions of the slowdown in Nasdaq companies are yet to come through in earnings downgrades, and the prospects of Indian companies may be dented, says Alok Jain.
The cement sector and a few consumer goods stocks can benefit from the current lower commodity prices, making them a good bet, he says.
India is more resilient from bank runs as deposit base is distributed and there is more friction in larger transactions.
The market seems to have corrected quite a bit, with good valued opportunities showing up.
The Fed#39;s rate hike path for 2023 is like walking a tightrope between battling inflation and avoiding a banking crisis.
"In case of a correction, investors should focus on sectors/ themes which are likely to have reasonable steadiness on earnings front."
The RBI might hike the repo rate by another 25-50 basis points. Though in Quantum MF#39;s opinion that would be overtightening and will likely reverse soon.
Nifty and Sensex could see double-digit gains in this calendar year. A crash looks unlikely for only the Indian markets.
The Chief Investment Officer continues to avoid these in client portfolios as they still do not meet investment norms.
The June (2022) market level is 10 percent lower from here, I would think that it’s a non-trivial probability for the market getting there.
"The banking sector has been posting very strong quarterly results with improving margins, strong credit growth, and benign asset quality," said Prateek Pant, Chief Business Officer at WhiteOak Capital Asset Management
The relative valuation of Indian markets has become reasonable after the recent corrections. Also, compared to its historical average price to earnings multiple, Nifty50 is trading at a fair level.
The US Fed rate of interest will peak around 5.75-6.0 percent by the end of October 2023. While making this prediction, I am keeping geopolitical risk constant.
Investors would do well if they invest in broad-based funds which do not cater to specific factors or sectors.
We expect a softening of exports due to a slowdown in the global economy in the short term. We expect a softening of exports due to a slowdown in the global economy in the short term.
The big trigger in the markets is the way you see how the inflation plays out and if the earnings start looking better, especially the March earnings, when they start coming in the next one or two months.
From market performance perspective, CY23 is likely to be a year of two halves, with the markets expected to see some correction/consolidation in the first half, followed by some improvement as we progress in the second half.
"Value stocks and dividend yield plays have done very well over the last twelve months, driven by a rising interest rate environment, and tightening liquidity conditions. This trend could continue to play out in the near term," said Hardik Doshi, WealthBasket Curator and Head - Portfolio Management at White Whale Partners "We are in the last leg of panic in the markets. We have already seen almost 17 months of subdued broader markets. The market cycles have become shorter now," said Divam Sharma, founder of Green Portfolio "We are in the last leg of panic in the markets. We have already seen almost 17 months of subdued broader markets. The market cycles have become shorter now," said Divam Sharma, founder of Green Portfolio
V Srivatsa of UTI AMC believes that IT sector should grow in line or better than expectations embedded in market prices. V Srivatsa of UTI AMC believes that IT sector should grow in line or better than expectations embedded in market prices.
We believe that the market is tracking inflation and its impact on monetary policy closely.
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.
