In the run-up to the elections, sectors such as consumption and infrastructure tend to be in the limelight. We are constructive on financials, healthcare and infrastructure sectors.
From a top-down basis, the market valuations look reasonable with Nifty-50 trading at 16.3X FY20E ‘EPS’ and 14.1X FY21 ‘EPS’ in the historical context and versus bond yields
"Mid and small caps are likely to underperform until their valuations become attractive, says Vivek Ranjan Misra of Karvy Stock Broking.
The focus in portfolio investments should be largely on large-caps and to some extent on the mid-caps, and one needs to be selective in the investments given the liquidity conditions in the market,
The performance of broader space seems to be on expected lines as experts had predicted
After a dismal performance in 2018, the year 2019 is expected to be a good year on hopes of earnings revival and rally in select stocks
Commodity cost pressure has also abated since then and this bodes well for the future trajectory of growth, said Shibani Kurian of Kotak Mahindra Asset Management
Equity markets around the globe have been under pressure on account of trade war fears, interest rate hike and valuation concerns
Kacholia has 25 stocks in his portfolio in which he holds over a percent stake, according to shareholding data as on October 28.
But expects earnings recovery to cushion the impact; believes any correction in Maruti Suzuki to be a buying opportunity.
The Nifty has risen over 7 percent, or by about 800 points, in the September quarter which will end on September 30. Most experts feel that index is likely to consolidate but there will be plenty of action among the stocks.
If you look at a 3-6 months period, stocks will still look at prices way lower than earlier, said Pritam Deuskar, Fund Manager, Bonanza Portfolio
However, some midcaps managed to buck the trend and witnessed buying momentum amid selling in the broader market
The S&P BSE Sensex hit a record high of 36,443 on January 29 but witnessed selling pressure in the past 5 months as traders preferred to book profits
The current trends on global macros do indicate that there will be pressure on the rupee along with other EM currencies in times to come
In the broader markets, midcaps had a good day of trade as they outperformed frontliners.
Smallcap stocks are always vulnerable and toxic in nature as compared to the midcap and largecap stocks, said Jaydeb Dey of Stewart & Mackertich Wealth
We have constructed a 16-stock mid-cap portfolio to capitalise on the current weakness, which we feel presents a good opportunity for long term investors
The Sensex rallied 260.59 points to 35,547.33 and the Nifty rose 61.50 points to 10,772 amid balanced market breadth.
We sense that market may see some respite from the poor performance of mid and smallcaps in the near term, said Vinod Nair, Head of Research at Geojit Financial Services
For investors in the current market, he said that it would be prudent to have a systematic approach with investing rather than timing the market.
In the BFSI space, microfinance will see a good year in FY19, private sector banks will remain attractive.
The most actively traded stocks on the NSE were Bajaj Finance, up over 4 percent, and Reliance Communications, which plunged over 10 percent.
The market breadth was in favour of the advances with 1121 stocks advancing while 487 declined and 431 remained unchanged. On the other hand, in the BSE, 1345 stocks advanced and 658 declined and 107 remained unchanged.
The market breadth was in favour of the declines on Monday morning with 120 stocks advancing while 1532 stocks declined and 382 stocks remained unchanged. On the BSE, 266 stocks advanced while 1960 stocks declined and 79 remained unchanged.