Sanjiv Bhasin said stronger-than-expected corporate results with banks and autos coming to the fore saw the demographic premium become a force for Indian stock markets.
Realty, capex, consumer and select banks may outperform, Sanjiv Bhasin, director at IIFL Securities, told Mint's Asit Manohar. Talking about the overall market performance, he said that December will see higher highs with few days of consolidation as December historically gives good returns.
Here are edited excerpts from that interview:
Indian benchmark indices hit higher levels on November 24 due to upbeat global markets and withdrawal of FII money. What's your read on this week's market moves?
It was a FOMO (fear of missing out) moment for foreign investors, who succumbed to global cues and sold Indian equities as the Nifty fell to 15,200. But he soon realized the power of the retail investor, who put his money where his mouth is and made Sensex the best performing index globally. Stronger-than-expected corporate results with banks and autos seen from the front showed that the demographic premium turned out to be a force for Indian stock markets.
Where do you see the indices in the coming week?
New highs will be seen with consolidation as December sees historically good returns as mostly dovish news with the Federal Reserve also indicating rate hikes in December will be 50 basis points given the USD decline and emerging market losses. performs well. China cutting CRR indicates that problems on the ground have escalated since the return of Covid, making India the most expensive but reliable market for foreign investors. Hence, 18,400-18,880 could be the expected levels for the next week with Bank Nifty. 43,700.
Strong performance was seen in the IT and banking sector this week. Are these long term bets? Any favorite area?
Yes, IT has made a strong comeback as the fear of inflation and job losses subsides with the cheapest valuations this year. Banks have been different in the last 3 months, the best PSU banks have seen in 5 years as there has been a scramble to buy mid and small cap banks. Stock prices see jumps of anywhere from 25-125%. The liability side is holding up well for banks with credit growth and write backs in the infrastructure book adding to the kitty. However, we expect realty, infrastructure capex stocks and cement to outperform in the near term. Condition.
Generally, the first phase of buying by foreign investors is in large caps, followed by local buying by retail in mid and small caps, in which PSUs have performed very well and which may see more institutional participation as ETF inflows buy. is directed in
Which are the sectors which are expected to outperform?
Realty, capex, consumer and select banks may do better with IT, as inflation in the US and Federal Reserve rate action peak in early 2023.
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