Indian market is down by about 40 percent from the record high witnessed in January 2020 which has pushed the S&P BSE Sensex as well as Nifty50 to multi-year lows but analysts at top brokerage firms advise investors to avoid bottom fishing at current levels.
Credit Suisse in a note to its clients said that almost 45 percent of the top 200 stocks by market cap are down by about 30 percent from their respective life highs, but we still do not believe it is time to bottom fish.
Valuations are looking attractive now as the Nifty forward P/E is down 17 percent from January 2020 high, and is back to 2017 levels. Stocks that are worth monitoring include names like NTPC, Ambuja Cements, Cipla, Godrej Consumer, and Shriram Transport.
Morgan Stanley in its note to clients said that multiple indicators suggest a bear-market trough, but it is tough to call absolute bottom with precision, but it's close on many metrics.
The search for the elusive bottom continues. Morgan Stanley’s Ridham Desai writes in his note to clients that while it's not possible to call an absolute bottom with precision, the market could be nearing it, based on many metrics.
Morgan Stanley has cut its Sensex EPS growth for the third time after the virus outbreak and now expects it grow 10 percent, down from the earlier forecast of a 20 percent growth.
The broking firm has added BPCL, Bajaj Auto, Bajaj Finance, ICICI Prudential, and Titan to its “Focus List”. It has dropped Bharat Electronics, Indian Hotels, M&M, M&M Finance and NTPC from that list.
The global investment bank has raised positions in financials by 300 bps, Energy by 200 bps, and materials by 200 bps. It trimmed position in technology by 300 bps & industrials by 400 bps.
Disclaimer: The above report is compiled from information available on public platforms, and CNBC-TV18 reports. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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