After days of consecutive gains, the domestic market finally recorded profits on Friday. As markets around the world rejoice in a drop in US inflation from decade highs, Fed policymakers have not ruled out aggressive rate hikes ahead. The dollar index is rising, which could again reverse foreign flows to India. In addition, stock market valuations are no longer cheap and earnings are unlikely to surprise on the upside going forward. This raises the question of whether the recent rally would hold.
ETMarkets sat down with Rahul Shah, Co-Head of Research at Equitymaster, to find out what strategy investors should adopt in the current environment. Shah talked about the factors to watch out for in the future; he also talked about his best sector bets and also about the IPO market which has been in a lull lately.
Q. The market has rallied a lot over the past two months, in line with global markets. Is it time to buy the dips or take the profits?
Q. The narrative has changed. Inflation is easing, as are concerns about earnings downgrades. Where do you see the key indices, Sensex and Nifty50, by Diwali or at the end of the year? What can lift the markets or spoil the party?
Q. The banking and automotive sectors have emerged as the big winners from the recent recovery. Will this outperformance last?
Q. Any particular industry that you think can supply some multibaggers in the future? What is your mantra for picking stocks?
Q. A few companies have filed draft IPO documents. There are many, who already have Sebi’s endorsements but have so far refrained from coming forward. Do you see this lull in the primary market ending with the recent performance of the secondary market?
Thanks Mr. Shah for the ideas.
That’s all in this week’s special podcast. Keep checking this space for more interesting content and take the time to follow our market podcasts every day. Stay safe and have a nice weekend!