Devina Mehra of First Global reflects on the market s consensus shift towards capital goods, emphasizing the need to monitor potential sector peaks. She also discusses stock market volatility, election impact, and risk management strategies for smallcap stocks. Mehra says: "We have added a few commodity stocks in our last rebalance some amount of metal, steel, etc, and even some cement."
Rohit Agarwal, Senior Fund Manager at Kotak Mahindra Life Insurance, analyzes the Indian IT sector s average position and predicts a 6-7% growth for largecap Indian IT companies. Current valuations anticipate this growth, with considerations for interest rate reductions in the US and economic recovery. Agarwal says: "Some of the pockets that we believe are still good are the BFSI space and the manufacturing space."
Pankaj Pandey provides insights on market trends, including Nifty expectations, IT sector performance, rural growth patterns for different industries, and the preference for capex-oriented sectors over consumption sectors. Pandey further says: "I feel that 23,400 in the near term plus or 25,000 towards the year end is very much on the cards. "
Dharmesh Shah, Head-Technical at ICICI Direct, suggests viewing PSU corrections positively as buying opportunities. He also anticipates that Nifty momentum will sustain and has a positive outlook on Nifty auto index and Maruti. He further recommends accumulation in the IT sector for medium-term gains as he expects a gradual recovery in the IT index.
Raamdeo Agrawal discusses the rerating of PSUs and the potential growth of IT companies. PSUs, which were once undervalued, have seen a reversion to mean and have become leaders in the bull market. The government s continued investment in PSUs is expected to fuel further growth. As for IT companies, despite the current lackluster numbers, they have a global competitive advantage and will benefit from the normalization of corporate activity and the deployment of new technologies. The potential for IT implementation is significant.