Indian equity benchmarks – the Sensex and the Nifty – ended the week on a negative note, falling about two percent each as sentiment remained fragile due to the second COVID-19 wave in the country.
The pandemic is the top trigger for the market at this juncture and it is expected to remain so in the short term. The March quarter earnings announcements can cause stock-specific movement.
“We maintain our cautious stance for the markets in the near term as increasing restrictions (to curb the spread of coronavirus) would adversely impact economic activity and earnings,” said Ajit Mishra, VP – Research, Religare Broking.
Here’s what top Dalal Street experts have to say about the market
India is beautifully placed to register double-digit growth over the next four to five years. I anticipate that despite the second COVID surge we are going to have double-digit real growth this year.
The market was on the verge of a major bull run, which started when the Nifty hit a low of 7,500 in 2020.
I think there is going to be a big upturn in the Indian economy.
Look at the divergence between the valuation of cement stocks and metal stocks and look at the prospects of metal stocks, I think there is a great opportunity there.
I am a large investor in metal stocks. The most battered stocks in the midcaps and the smallcaps are going to give the biggest returns.
Sudip Bandopadhyay, Group Chairman, Inditrade Capital
Reliance Industries (RIL) is a fantastic buy at current levels. I have been bullish on RIL for some time and with the correction around Rs 1,900, it is definitely a good buy for somebody who has a 6-12 months’ time horizon.
Cement is going to perform very well. So, one can go and pick up cement stocks taking the opportunity of a dip, if there is one, in the coming days. Positive on ACC, Birla Corporation, Deccan Cements and Dalmia Cement.
Sandeep Bhardwaj, CEO, Retail, IIFL Securities
The second wave of COVID-19 is likely to be negative for economic growth if the restrictions continue for long enough to create economic and supply disruptions. We believe there will be further consolidation in the market.
We are recommending parking of money in pharma sector, insurance sector and financial sector. During high volatility, select banking and financial sector stocks will give a return in the portfolio, while the pharma sector and insurance sector also provide support to the investors.
We believe small and midcap stocks will continue to outperform further. There are many good businesses that have weathered the COVID storm and showed excellent business resilience. We expect the focus of investors on such stocks this time.
Nilesh Shah of Envision Capital
The opportunity for technology companies is likely to sustain and even get bigger. It doesn’t seem to be just a short-term phenomenon, but it is something which looks very enduring, he noted.
Tata Consultancy Services (TCS), Infosys, Wipro, and HCL Technologies – each one of them has an edge somewhere in consulting, hi-tech, or in products. But the company that we like the most today, especially keeping in mind both growth prospects as well as the valuations, is HCL Technologies.
Rohit Srivastava, Founder and Strategist, Indiacharts.com
I think 14,150 on the Nifty and 30,405 on the Bank Nifty should be the final bottom. We may be setting up for a rally going into the month of May.
The only question is does it happen fast or does it happen slowly because of all the negative news that still continues to unfold around us but it does look like we will see a pickup in the indices going forward.
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The above report is compiled from information available on CNBC-TV18. Moneycontrol advises users to check with certified experts before taking any investment decisions.