Daily Voice: 5 threats to the equity market, keep an eye on them

In the current uncertain environment, the Indian market is giving the world more opportunities for investment and growth than other markets. these things Anil Rego of Right Horizons PMS Moneycontrol In the interview given to Anil Rego, who has over 3 decades of investment experience in the financial markets, believes that the delivered corporate sector and well-capitalized and profitable banking sector augurs well for a sustainable economic recovery in the country. However, there are 5 factors that can keep the market at constant risk. This includes factors such as inflation, rising interest rates, slowdown in demand or weak festive demand, volatility in commodity prices and fears of a possible slowdown in major economies around the world.

Where are you looking from investment point of view? Responding to this question, Anil said that the operational performance of banks in the first quarter of FY 2023 has been good. Advances of banks have seen good growth during this period. At the same time, there has been a decline in the cost of credit. Going forward, we expect the banking sector to remain strong on the back of growth in retail, business banking and SME segments.

In this conversation, he further said that the cyclical sector like auto, after three years of slowdown, now seems to be gaining momentum. It is taking advantage of the increasing demand. The festive season is expected to see good demand across all segments of autos. With the boom in the electric vehicle business, the growth of the auto sector can be further strengthened. Hence, we expect multibagger performance from several auto and auto ancillary stocks.

Talking about the chemical sector, Anil Rego said that there is a huge demand for specialty chemicals from the food processing, personal care, home care industries. In view of this, many chemical companies are expanding their capacity. This sector is also getting the benefit of the China Plus One policy. In such a situation, we will get good opportunities for earning in the chemical sector.

Over $30 billion in Indian equities has been sold by foreign institutional investors (FIIs) amid global economic concerns. FIIs have been net buyers in July 2022 and have continued to buy in the month of August as well. The Indian economy remains strong and continues to grow in this environment of turbulence and uncertainty. As global central banks become less aggressive in raising interest rates, the FII money is expected to see further gains. However, even if some unforeseen event happens in the global economy, our hope can be dashed.

Disclaimer: The views expressed on moneycontrol.com are the personal views of the experts. Website or Management is not responsible for this. Money Control advises users to consult a certified expert before taking any investment decision.

(Disclaimer: Network 18 Media & Investment Ltd. is owned by Independent Media Trust. Its beneficiary company is Reliance Industries.)

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