In an interaction with Roop Bhootra, CEO - Investment Services, Anand Rathi Shares and Stock Brokers
In this interview, Roop Bhootra, CEO (Investment Services), Anand Rathi Shares and Stock Brokers, points to the fact that the worst may be behind us and the corporate earnings may put some fresh wind in the sails of investors
What’s your outlook on the domestic equity markets in the short to medium term?
The markets are starting to show signs of stabilisation and also some buying has emerged in some pockets. With the recent decline in broader commodity prices that may aid a potential decline in inflation, there may be positive sentiments in the latter half of the year. The worst is behind us for the moment and now it’s up to the corporate results which should decide the further course of the markets. Investors could start looking at adding some positions in companies reporting better results.
How has the earnings’ season been so far?
It is too early to tell as we are just into the initial days of the results’ season and if you consider Nifty 50 results, only seven companies comprising about 20 per cent in weight have declared results so far. Having said that, so far the results have been fairly on expected lines and there are no major negative surprises. The top-line growth is decent while margin pressure continues to remain, particularly so for manufacturing companies.
What is your outlook on the markets for FY23 and the key risks facing them?
The markets should stabilise and consolidate from here onwards. As inflation concerns ease going into the second half of the current year, we should see some improvement in corporate earnings which could set the stage for the next leg of movement heading into the next year.
Which three sectors would you bet on for the long term?
Banks and financials, manufacturing and capital goods, specialty chemicals and IT are attractive at current valuations.