Nifty, which has started a structure of higher highs and higher lows, is prepared for a new expansion phase, says Santosh Meena of Swastika Investmart.
Indian equity markets are trading at valuations which are in line with historic averages with earnings expected to grow faster than the last 5 years.
HDFC Bank has consolidated for 3 years, and a re-rating is expected in the company after the merger of HDFC Bank and HDFC Ltd. which was announced earlier this year.
RBI has clearly signalled a pause in rate hikes. In the US we may see the rate hike cycle continue.
"The US Government policies are encouraging manufacturing and unemployment remains at low levels. Hence, inflation is likely to remain higher for longer in the USA versus history," Satish Ramanathan, Chief Investment Officer - Equity at JM Financial Asset Management.
India is positioned at a very different point in the cycle with both bank and corporate balance sheets being much stronger than developed markets and rest of EMs (emerging markets).
The first 15 days of April have made up for all the pessimism of February and March, says IIFL Finance’s Sanjiv Bhasin. He believes that the market might hit new highs in May 2023.
Harsha Upadhyaya, CIO Equity at Kotak Mutual Fund, expects a range-bound market in the near term, citing the unlikely resumption of earnings momentum. He remains cautious on the IT and new-age space and is bullish on sectors with steady earnings growth, such as banking, auto, cement, and industrials.
Madhusudan Sarda of Credent AIM Multi-Cap Strategy feels in the medium to long term the Indian IT sector is well poised to capture the rebound in tech spending from various developed countries for IT services.
When it comes to cyclical recovery, Vinit Sambre is keeping faith on healthcare, agro-based companies, automobile and auto ancillary sectors When it comes to cyclical recovery, Vinit Sambre is keeping faith on healthcare, agro-based companies, automobile and auto ancillary sectors
The market widely expects the US Federal Reserve to pause the rate hike sequence and then pivot soon.
Amit Premchandani of UTI AMC is positive on healthcare sector given that healthcare expenditure to GDP for a country like India is still pretty low.
Amit Jain of Ashika Global is cautious about equity as an asset class for the short and medium term.
The pharma sector is showing bottoming signs and strong recoveries post an extended decline and the initial thrusts have strong technical patterns which suggest that they could continue to do well in the near-term.
The bulk of liquidity tightening is over. As inflationary pressures ease, central banks are expected to pause rate hikes, says Sehgal. Monsoon rains, however, remain a worry, as deficient rainfall can send prices spiraling and also affect stocks dependent on rural strength
The weaker banks are still prone and hence we may see more negative news coming out of US. However, the medicine for bank stress has been found but the diagnosis shall continue.
Financials have tailwind of a healthy balance sheet, strong credit growth and lower credit cost with valuations in line with long-term averages.
Overall earnings are expected to be led by the banking sector as it has been in an advantageous situation in current scenario where asset repricing has taken place and liabilities repricing is happening with a lag.
We are close to the peak in terms (not necessarily the end) of the rate cycle, however, the market has digested most of the rate hikes.
One can also look at ancillaries (who supply to) core industries like cement, steel, and mining all of which will benefit from capex boom, says Naveen Chandramohan, the Founder and Fund Manager of Itus Capital
Given the current context of slowing global growth and a cyclical upswing for India, the framework is pointing to overweight financials and a neutral stance on the IT sector, says Sanjay Bembalkar of Union Asset Management Company
PSU as a general theme looks attractive. There have been continuous orders from governments either its defense, oil gas, power, or infra and there#39;s continuous thrust on spending to support the Made-in-India theme.
We did have a series of rate hikes starting from May 2022 and one would believe that interest rate hikes will dampen the mood for both, the real estate and the auto sector.
Zomato is a disruptor in food business, albeit offering a win-win-win solution.
The China 1 strategy is an emerging theme to watch closely. As global buyers diversify their supply base and companies migrate out of China, India#39;s manufacturing base is expanding.
OmniScience Capital CEO and Chief Investment Strategist Vikas Gupta expects the FMCG sector to grow at a slow pace, as demand looks saturated. He also stays away from the real estate sector due to a highly leveraged business model
The Nuvama Capital Markets president believes that India is poised to enter a high growth phase in the second half of FY24 and he is betting on domestic-oriented businesses over those driven by exports
It#39;s very likely that the second half of calendar year 2023 will be better than certainly the first quarter that has gone by in terms of equity market returns.
FMCG is likely to see a muted quarter in Q4FY23, and sales growth in staples would be led by value growth and premiumisation.
Indian interest rates will be a function of the global interest rate increase cycle rather than just domestic inflation.
From sectoral perspective we continue to like Capital Goods, Banking Finance, Infra, Cement, Paper, Rice, Auto/Auto Ancillaries, Chemicals, Telecom.
India will not just be a $5 trillion economy in the coming days but will remain a foremost contributor to global GDP growth.
No one knows what is going to happen in April but after witnessing one side down trend that we have witnessed in past few months; a short-term bounce cannot be ruled out.
