Weekly Dossier | Rupen Rajguru, Harsha Upadhyaya & others on market trends, investment strategy

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© Nishant Kumar Weekly Dossier | Rupen Rajguru, Harsha Upadhyaya & others on market trends, investment strategy

The Indian market ended in the green for the second consecutive week despite visible signs of profit-booking.  Equity benchmarks the Sensex and the Nifty rose about two percent for the week compared to the 2.5 percent gain in the S&P BSE midcap index and 2.7 percent for the smallcap index.

The Budget momentum continued for the second consecutive week in a row, especially in the small and midcap space which are a play on the big Capex spend from the government.

Positive global cues and strong results from India Inc for the quarter ended December, helped teh bulls to support the benchmark indices at lower levels.

The long-term outlook for the market is positive, however, occasional profit-booking cannot be ruled out. Well-known experts have shared their thoughts on markets, areas of opportunities and sectors. Here are some of them:

Rupen Rajguru, Julius Baer (to CNBC-TV-18)

The market rally will continue led by earnings recovery. When we get into an economic cycle, financials are the best leverage play.

Financials will do well coupled with the stocks from industrials, manufacturing, cement, real estate, all those will do well and those are the sectors that we like.

In autos, the OEMs earlier had a pent-up demand, which came into play. However, now we have to be a little bit cautious about the valuations of some of these automobile companies.

Also, the input costs for some of the OEMs have gone up. While structurally we like the sector but I would be wary of valuations in some of these companies. So, we would look for a better entry point because the sector has seen a decent run-up.

Harsha Upadhyaya, Kotak MF (to CNBC-TV-18)

Q3FY21 has been fantastic and has beat expectations. We believe the auto cycle has turned for the best and expect further volume growth.

Debt reduction will lend support to the valuations of metal companies. We continue to hold on to stocks in both ferrous and non-ferrous space.

The revival of the Indian economy will reflect in better credit offtake. Recapitalisation from the government will aid PSUs to deliver better credit growth.

Sridhar Sivaram, Enam Holdings (to CNBC-TV-18)

The Indian market has further upside from hereon. We are comfortable in buying domestic cyclicals post Budget 2021 push.

We prefer corporate facing banks versus NBFCs. We continue to hold our positive stance on metal space.

We remain positive on ferrous, non-ferrous and cement companies. We are not positive about insurance companies and a bit cautious about auto stocks after the recent rally.

PSUs look attractive as they are undervalued.

Niraj Kumar, Future Generali India Life Insurance

Investors should deem equity markets as an asset class for long-term wealth creation. They should solely focus on the long-term potential of the markets.

This Budget has laid the foundation for a robust growth conducive platform, which will percolate into strong equity market performance over the next few years.

We believe that the investors should use the opportunity to deploy funds as and when they get weakness. One should keep investing as per an individual’s goals.

However, at the same time, it’s important for the investors to be mindful and not to get euphoric and maintain the discipline of asset allocation.

Mihir Vora, Max Life Insurance (to CNBC-TV-18)

We would still stick to retail-oriented NBFCs and that comprises durables lenders, small-ticket loans, microfinance as well as mortgage finance because their risks are granular in nature.

Because of funding cost reduction and probably the worst of the cyclical downturn being over, there can be an uptick for the NBFCs.

Rohit Srivastava, Indiacharts.com (to CNBC-TV-18)

We have had a pretty good post-Budget rally. Looking back at history, there were only four or five such occasions where you had a pre-Budget sell-off and then a rally. In three of them what you notice is that you do get a pullback, 50-60 percent kind of a retracement of the rise and then the upmove resumes.

Reliance underperformed and lagged the market since August 2020. However, we now have somewhat of a triple bottom in Reliance close to the Rs 1,820-1,850 range and from there it is now starting to move up.

So we should look for more participation from Reliance and supporting the market. Apart from that, I would positively look at banking, metals and PSU stocks.

Disclosure: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.

Disclaimer: The report is compiled from information available on public platforms. Moneycontrol advises users to check with certified experts before taking any investment decisions.