Ajay Bagga believes that the worst is over for the IT sector, although the recovery will be slow. He emphasizes the importance of embracing technologies like generative AI and machine learning to add value and attract market rewards. The midcap rally in the market continues, driven by unexpected movements from foreign institutional investors (FIIs). The recent selloff of shares worth Rs 23,000 crore by FIIs may be related to the withdrawal of Chinese and foreign investments in China. The earnings season has been tepid so far.
Interest rates could soften towards the second half of calendar 2024, but for now, the Reserve Bank of India will continue on pause. If you have Rs 10 lakh to invest today, deploy 60-70 percent in equities, 25-30 percent in debt and the balance 10-15 percent in alternative avenues including gold, says Srikanth Subramanian, CEO, Kotak Cherry.
“It is not right for us to conclude that midcap and smallcaps are in a bubble. Yes, they have done well and the most interesting part is if you look at the corporate results for last quarter, companies have performed well and that is probably leading the rally in midcaps and smallcaps.”
I am surprised that markets are holding on. Are markets telling us to look forward or is this complacency?
By now, we have got used to the market not behaving the way we want it to behave. We saw that last year in the midst of a complete lockdown. The market had decided to make its own move disregarding what was happening in the economy. Towards the end of the year, we realised the market was right and most of the analysts had to do the catching up in terms of fundamentals. The companies performed quite well towards the end of last year.