HEAD EQUITY STRATEGY,
FPI selling may continue till recession fears loom. Given this uncertain macro environment and full impact of raw material inflation to be felt in 1HFY23, earnings delivery becomes crucial for the markets. We suggest caution to traders and advise not carrying any positions overnight given the heightened volatility. Investors, if sitting on cash, can slowly start accumulating quality stocks on a very selective basis in a staggered manner.
CO-HEAD, KOTAK INSTITUTIONAL EQUITIES
For new investors with low-risk appetite, they may be better off staying out of equities given the possibility of extreme volatility and low comfort in near-term macroeconomic variables or investing in fixed income as bond yields are quite high and they may want to lock into the high yields. For new investors with a somewhat longer investment horizon and higher risk appetite, they can look at deploying money gradually into equities
CHIEF INVESTMENT OFFICER, PPFAS ASSET MANAGEMENT
There are certain pockets which are very attractive. Banks, especially ones with low-cost deposits, are attractive. IT services are generally attractive. Utilities and certain commodity companies are attractive. There are pockets where valuations still seem very expensive, especially in some of the newly-listed stocks, and in FMCG and consumption related stocks. There are some very attractive opportunities especially in the big tech space in the US. Most of the future rate hikes are already priced into the current yields in debt market. The medium-term space (2026 to 2029 maturity) looks attractive for investment.
While most of the bad news is priced in to some extent, the volatility is immense because of
higher commodity prices which are driving inflation. A resolution to the Russia-Ukraine crisis could be one of the positives. Investors should pick good stocks and do systematic investment in them. I would suggest contrarian themes — IT, metals and midcaps
CHIEF INVESTMENT OFFICER, MIRAE ASSET INVESTMENT MANAGERS
Market valuations are now reasonable, considering that growth would withstand the global headwinds. Also, most of the fall in our opinion is quotational as it’s technically driven by unprecedented FII selling which cannot continue forever. We believe that investors should increase exposure in equities for the long term, within disciplined asset allocation.
While India remains one of the most structural markets in the world, the near term outlook looks uncertain and volatile because of the US rate tightening. The US Fed is expected to continue hiking rates till September, we feel that concerns over inflation and interest rates could start subsiding by then. Investors should focus on asset allocation and we prefer large-caps to smalland mid-caps at this point in time. Within debt, we are recommending floating rate plans and SIPs or STPs in Gilt or long-term debt funds.