The Indian market ended the week with gains despite falling about a percent each on March 4 and 5. The BSE Sensex rose 2.6 percent, while the Nifty50 rallied 2.8 percent for the week, compared to 3.05 percent gains seen in the BSE midcap index and 3.8 percent gains in the smallcap index.
Broader markets remained largely resilient even as volatility was seen in the benchmark indices. The Nifty50 failed to hold on to the crucial support of 15,000 on weekly basis towards the close of the trade of March 5.
The long-term view of the market is positive but the rising bond yield is a matter of concern. Here is what experts have to say on markets:
Shankar Sharma, Vice Chairman & Joint MD, First Global (to CNBC-TV18)
The trouble in markets is that when we all become fat, complacent, over-fed on easy profits that is the time when the markets surprises.
Right now we are all fattened by easy profits for the last eight-12 months’ time. We are all fattened by ultra-cheap interest rates, low inflation, we are all fattened by the belief that the Fed is god.
I worry about these things when I see so much consensus and so much over-fed people, fat people skating on thin ice I have a problem with that. Which is all I am saying, I am not saying the ice will crack, all I am saying is if I am skating on that thin ice, I want to be very thin I don’t want to be fat.
The markets are going to be worrying about inflation if not now I think in the very near-term.
Nirmal Jain, CEO, IIFL Finance (to CNBC-TV18)
From 2008 to 2018, the economy was firing up only on one engine and that is consumption growth but in other nations, there are three engines that drive the economic growth—consumption, investment and exports.
However, given the Union Budget that we have had, investment and exports can fire up. So, I am optimistic that 15-20 percent growth will sustain and that’s what the market should return for the next three-four years.
Sectors like capital goods, consumer staples as well as discretionary or metals are doing very well because commodity prices are doing well all over. So, this is a time to pick up stocks from multiple sectors rather than putting weight in one sector.
Vaibhav Sanghavi, Co-CEO, Avendus Capital Alternate Strategies (to CNBC-TV18)
Earnings growth may gather up steam and markets will follow it, going forward.
Even though we may not see a further PE re-rating on the higher side, the earnings story would pick up steam and probably you may see the markets following the earnings growth.
We like PSUs, including banks, as a tactical play in the portfolio. We are bullish on the housing finance and insurance sector as well.
Vikas Khemani, Founder, Carnelian Capital Advisors (to CNBC-TV18)
This is the beginning of a very big bull market. You will see a fairly diversified bull market. Banking and financial services stocks would do very well.
The manufacturing segment is the one segment where we are seeing a very big investment cycle picking up in the next three-four years. Capital goods stocks, industrials will do extremely well.
We are positive about IT services as this is one sector where India has no competition. Only Indian companies cater to global demand.Disclaimer: The report is compiled from information available on public platforms. Moneycontrol advises users to check with certified experts before taking any investment decisions.