Equity markets are in a state of suspended animation - it is conflicted on which way to move. While global markets, and the rupee are flashing red signs, India is holding up due to its 'Atmanirbharta
Auto manufacturing getting a big push from EVs, and global air traffic normalising are also likely to be major contributors on the demand side for metals and crude oil
Macro headwinds, such as high global crude oil prices, supply-chain disruptions escalating tensions between US and China, are likely to keep global and local markets volatile
As against the pre-Covid peak of 41,945 that the S&P BSE Sensex attained in January 2020, the Hindu accounting year ended 3.6 per cent up at 43,443 points
On the other hand, PSU stocks and banks have been laggards - with ONGC, Indian Oil, IndusInd Bank, and Coal India delivering the worst returns.
Higher valuations could increase volatility in the new Samvat
SINGHANIA, Abakkus Asset Manager, tells Puneet Wadhwa that back home, the September 2020 quarter results may comprehensively beat expectations and that may result in big earnings upgrades
Given the sharp volatility, it is preferable to stick to leaders or top-tier players across sectors as they consolidate their position and gain market share
While value has emerged in some pockets, investors continue to seek refuge in safety and quality
Three key factors to watch out for in Samvat 2076 would be reducing stress in financial sector, further stimulus announcements by the govt and overall economic growth and resolution of US-China trade.
The next bull-run would be based on strong business models, high standard of ethics, corporate governance and healthy balance-sheets.
Falling interest rates and likely revival in corporate earnings should aid sentiment, says Jaipuria
Will these catch up with market returns this Samvat?