INSUBCONTINENT EXCLUSIVE:
Instead of taking short-term views, experts advise investors to take into account the broader picture.Diwali is possibly the most auspicious
Even as the economy is catching up on to the festive fervour - in terms of softening inflation and robust growth - liquidity concerns have
dampened sentiments, leading to high volatility on Dalal Street
The SP BSE Sensex which hit an all-time high of 38,989.65 on August 29 is now trading around the 34,000-level.The Nifty, which hit a fresh
record at 11,760.20 on August 28 has now fallen to 10,450 levels
So is it a good time to invest in equitiesSome experts believe that the ongoing market correction is a great opportunity for investors
sitting on side-lines or those looking to add exposure
"Since the last four years markets have seen a steady rally across sectors and it is only recently that we have seen some decline", said
Aditya Maru, Director and Founder, Augain Wealth Management.Other analysts, however, believe that the market situation, ahead of state and
central elections, is not favourable
"With five state elections during November-December 2018 and the general election in May 2019, we may not see much foreign capital inflow
for the next seven months," said Vijay Kuppa, Co- Founder, Orowealth
Markets will continue to trade in a range till then.Amid rising volatility, investing solely in equities may not be the best bet, says
"With uncertainty developing around elections, there is a higher possibility of increased volatility
It is not advisable to allocate 100 per cent of capital to equities", he added
He too forecast that the Sensex will trade in a range and the Nifty will hover between 10,000 on the lower end and 10,700 on the higher
term and do not really focus on pricing arbitrages brought about by event-linked volatilities
It is difficult to predict the market movement with current the economic background
It is better to refrain from trading from a short-term perspective", said Mohit Ralhan, Managing Partner and Chief Investment Officer, TIW
Private Equity.Where can you investFrom a long-term perspective, there are good companies available at significant discount to normal value
Currently, selection of correct sectoral themes is more important, suggest analysts
Instead of going for individual stocks, which would be a risky bet, go for a basket of stocks with a sectoral theme, they say."We are
bullish on consumption, manufacturing, infrastructure and auto
Rural economy has consistently displayed strong growth, which should boost consumption and auto stocks
crucial role to boost the overall GDP (Gross Domestic Product) and over the last several years, a lot of thrust has been on infrastructure
to support the overall growth of the economy", he added.Also with the depreciating rupee, IT, pharma and any export-related sector is likely
to find favor with investors
outlook for future will do well
Companies that disappoint on earnings expectations are likely to see growth slowdown
avoided," said Mr Mavani.Individual stocks to bet on:Amarjeet Maurya, Senior Equity Research Analysts, Angel Broking, placed his bets on
HDFC Bank, Mahindra Mahindra, RBL, Bata India, Aurobindo Pharma, Safari Industries, and GMM Pfaulder.HDFC Bank is on track to propel its
growth by way of capital infusion, lower cost of funds, credit cost and well-performing subsidiaries, he said
Factors like normal monsoon in rural areas for the third consecutive year will boost MM's sales; RBL has grown its loan book at healthy
and biosimilars; GMM Pfaulder is seeing strong order inflow from the user industries; and Safari Industries has grown its revenue by six
times in the last seven years, Mr Maurya added.So Dalal Steet has enough of options
Ahead of Diwali, you should definitely go for stock shopping!
