HDFC Securities remains underweight on consumer (staples and discretionary), energy and small banks.
The major challenge for equities in FY24 remains interest rate path volatility. Implied Fed funds rate and hike probabilities have been swinging almost every day at an unprecedented quantum. Stocks tend to underperform during such an uncertain environment
D-Street is keenly awaiting significant announcements on infrastructure spending, tax sops, disinvestment and more
The big headwind for the market in 2023 will be elevated volatility. This is on account of multiple factors most notably the central banks.
The economy-facing ones like select banks, cement, infrastructure, real estate, utilities, PSUs, and gas stocks still have room for rerating, says Sharma.
Our preferred sectors continue to be IT, Chemicals, Pharma, Telecom, Insurance, large Banks, Cement, Durables and Gas while we remain underweight on Consumption (Staples, Discretionary and Autos).
The market is in consolidation mode with 'low conviction coinciding with strong liquidity'. This makes the market narrow and the index level meaningless.
In an interview with CNBC-TV18, Unmesh Sharma of Macquarie Capital Securities says he has an ‘outperform‘ rating on Prestige Estate and DLF. He is also positive on Oberoi Realty, HDIL and Sobha Developer.