Small-caps are a little more ebullient (NSE small-cap index is up 18 percent YTD), and while there are still excellent opportunities, diligence level should be enhanced at this point in time.
Rohit Agarwal of Kotak Mahindra Life believes second quarter (Q2) ending September 2023 will not be significantly different from first quarter (Q1) ended June 2023, for IT space.
Rikesh Parikh, principal officer, Rockstud Capital, says a significant earnings upgrade looks unlikely but if rural demand perks up, the second half of FY24 will look better
Green Portfolio PMS founder Divam Sharma expects moderate growth in the FMCG sector and say IT companies will take a while to recover as the US and Europe, their main markets, grapple with economic challenges
Varun Lohchab of HDFC Securities believes current expensive valuation of Nifty happens to be another key risk factor.
The monsoon season indicates a potential comeback of rural demand; however, the full impact will only be known after the season is over.
Indian IT companies are well placed to ride on this secular growth and continue increasing market share like they have done in the last few decades.
Arun Chulani believes this is India’s decade from a structural basis, and any near-term volatility caused by liquidity flows can in fact create opportunities for FIIs to continue entering the market.
According to Dagli, the strong growth trajectory expected of the sector also supports its valuation metrics. He also expects the various segments within the pharma and healthcare space to perform well in the near term.
Long term target of the US Fed is to have inflation below 2 percent. The future course of rate hikes will depend on the trajectory of inflation and unemployment data.
Given the strong equity markets performance over the last year and a healthy outlook for India, Shiv Chanani, senior fund manager–equity, Baroda BNP Paribas Mutual Fund, expects retail investors to continue to fuel strong SIP inflows
India has been the fastest-growing top 10 economy in the world in FY 22 and FY 23. It is likely to remain so in FY 24 as well.
Given that the growth story of the country, a correction of 5 percent from current levels would make markets attractive to investors, says Prateek Agrawal of Motilal Oswal AMC.
Nifty is now trading over 22.5 times trailing earnings. At this stage, it could be better to stagger fresh equity purchase and look for corrections to add equity exposure.
A number of sectors like telecom, cement, capital goods, paints, oil marketing companies, NBFCs, and steel are expected to post better earnings than the overall market, in FY24.
Saion Mukherjee of Nomura India is positive on the financials sector. He thinks the earnings visibility is strong and valuations are not demanding.
Santosh Joseph, Founder and Managing Partner at Refolio Investments, believes people#39;s risk-taking ability has improved slightly, primarily due to alleviated concerns about inflation, which previously deterred them from investing in volatile assets such as equities.
ITUS Capital founder Naveen Chandramohan doesn#39;t see a slowdown in India and believes the country will continue to see strong supply-side growth that will benefit old-economy businesses
As an investment destination, India is considered to be in a favourable spot by global investors. Equity markets have a track record of surprising investors, particularly when there is a strong consensus, says Mayur Patel, Fund Manager, Listed Equity at 360 ONE Asset
The investment-led economic growth is a positive for the banking sector, especially considering the healthy balance sheets of corporates and banks.
Although the upside risks related to supply-side concerns have diminished, which is positive for core inflation projections, there is a possibility of food inflation acting as a dampening factor, notes Vivek Goel, Co-Founder and Joint Managing Director at Tailwind Financial Services.
A significant amount of activity in the primary market is expected for the remainder of the calendar year.
Hou Wey Fook of DBS Bank likes the IT services sector as it is a beneficiary of the global secular trend of digital transformation, the consumer staples and banking sectors as they benefit from the large consumption-centric population domestically.
The long-term risk for equity markets is the outcome of various state and national elections and the uncertainty associated with them, as they can have wide-ranging impact on policy decisions, says Darshan Engineer, Portfolio Manager, Karma Capital Advisors Green Portfolio PMS founder Divam Sharma sees value opportunities in the large IT space. He also expects the rural theme to play out in the second half of the current financial year as elections near
Barring few sectors, earnings in Q1FY24 are expected to see a positive momentum.
While valuations are a little higher than long-term average but they can be justified given the good earnings growth outlook and strong macroeconomic situation for India.
Sushant Bhansali of Ambit believes that rural markets are poised to revive going forward, and rural-oriented businesses will benefit from this.
With electric vehicles now coming to the forefront, the future looks bright for the auto industry, especially in the short to mid-term period.
Hardick Bora of Union Asset Management Company is positive on high-ticket consumption sectors, including real estate. India#39;s is at an inflection point in real estate. After underperforming for almost a decade, the sector is set for an above-average growth, he says
Overall, the AI theme is here to stay, and we are only at the beginning of understanding and harnessing its full potential.
