Sridhar Sivaram of Enam Holdings sees positive impact from interest rate transmission on earnings. He likes infrastructure, construction and capital goods and believes that the market will continue to climb wall of worry
One should not expect new highs for the market during Diwali time; instead investors need to brace themselves for more correction and volatility, says Dipan Mehta, Member BSE & NSE.
Going forward, financials, consumer discretionary and cyclicals are likely to lead the market rally, aided by positive economic growth, said James Sullivan, Head of Equity Research Asia ex Japan, JPMorgan.
It may be a good strategy to hold on to stocks of cyclicals and growth companies, and keep portfolio turnover low, Desai says.
It is a good time for long-term investors but a very confusing one for short-term traders is the word coming in from S Naren CIO, ICICI Prudential AMC.
Metals too are globally driven and with China too moving from investment led economy to consumer driven, there is need to have a cautious approach there, says Swati Kulkarni of UTI MF.
According to independent market expert Ratnesh Kumar, the current consolidation is because the earnings are not justifying valuations. He sees another 5-10 percent downside but remains constructive on market and believes in India story.
Jonathan Garner, managing director at Morgan Stanley believes that the market is discounting 12-20 percent earnings growth over the next 12-24 months.
Vibhav Kapoor of IL&FS says the Indian market will start to look attractive once again in the 8000-8300 range. He believes Nifty can trade in the 8000-9000 range over the next few months.
Mukherjea says he has trimmed exposure to some of the large cap cyclicals because prices have run up quite a bit.
Gunwani sees improving macro-economic environment as a major trigger for earnings growth.
Vetri feels there is likely to be a further expansion in price to earning (PE) multiple, and market performance will be related to earnings growth
Kapoor feels the investment cycle could take longer to pick up, also because of the government cutting down on expenditure to meet its fiscal deficit target
Deutsche Bank continues to see pick up in domestic flows and a 15-16 percent earnings growth this year for India.
Among sectors, Mowat is bullish on financials and two-wheeler companies in 2015. He also likes cyclicals such as materials and autos. He, however, is underweight on defensives at this point in time.
Dhirendra Tiwari also expects good opportunities in sectors like banks, capital goods and automobiles in 2015.
High beta stocks did well in December, indicating that the market may be slowing getting convinced about a turnaround in the economy, Morgan Stanley said in a note to clients
“If a rate cut is not announced on December 2nd, then the market could see a mild negative reaction,†Vibhav Kapoor of IL&FS said.
Anand Tandon says, one should look at stocks where there is still value. "If one looks at market as a whole there are still sectors available that are reasonably cheap like IT which has been ignored because growth rate is presumed to be slower than other cyclicals," he adds.
In its latest report, the research firm has said the new government‘s initial policy measures have been encouraging. It views focus on fiscal consolidation, ease of doing business and diesel price deregulation as significant medium-term positives.
Kapoor said the market was right now banking on hope and trying to discount FY16 numbers instead of FY15 numbers, be it macro or corporate earnings.
Deven Choksey, managing director, KR Choksey Shares and Securities expects teh rally to continue until FY15-end.
Rashesh Shah also expects private banks and manufacturing companies to come back into the portfolio.
According to Dhiraj Agarwal, the current trend in the market is more stock-specific rather than being sector-specific
Market expert Ambareesh Baliga remains positive on cyclicals and expects them to become more attractive post any market correction.