Market views: There was pressure in the market today on 14 August. Sensex-Nifty’s flat closing. When the Sensex climbed 58 points, the Nifty took a 12 point lead. At the same time, the Nifty Bank also managed to take a little lead, while the midcap index closed down. In such a situation, talking about the forward move and outlook of the market Mirae Asset Invt Manners (India) Vrajesh Kasera (Vrijesh Kasra) Said that Jio remains an eye on political situations. Focus on domestic macro situation. The earning season and companies performed.
Talking on global geopolitical situations, he said that the US has a total tariff in total on India. India was doubled tariff compared to Asian countries. There will be a direct impact on the textile and jewelery sector. The total export of US -India was at about 2% of GDP. While GDP growth was seen in the short term. The impact on GDP growth was limited in the long term.
Talking on domestic macro situation, he said that there was a concern over credit growth, there was a consumption on liquidity. The Indian economy is gradually stabilizing. Currently credit growth is between 9–10%. Further credit growth is expected to improve.
Giving opinion on the rural market, he said that there is a good growth from the last few quarters. This year, the rain was positive due to good rain. Agricultural, rural economy will benefit. There will be a focus on increasing income in rural areas while rural growth is expected to continue. Last year there was a slight slowdown. This year tax benefit will benefit. RBI’s credit improvement will show the benefit. Consumption will see improvement in the next 5–6 months.
Talking on the earning season, the earning season was better than the previous season. The results of the Nifty companies were better than expected. A little earning was cut, but it is very modest. FY26 is estimated to have approximately 2% earning cut while the fY27’s earnings are expected to remain stable. Some sectors are still expensive. The entire market cannot be called cheap yet. The market has been almost flat in the last 1 year. Time correction has taken place in the last 1 year. Nifty’s valuation is currently on 19X. Invest keeping in mind the long term growth story. Stay in the market, but adopt selective approach. Avoid lump sum investment, invest through STP.
Focus on which sector
Focus on banking and financials sectors. Private banks have high exposure while Urban consumption has a bullish attitude. There was a focus on the healthcare sector. Metals space has a positive view. At the same time, IT sector has a low acxponer while FMCG space has an underweight view. There were already underweight in the IT sector. After correction gradually underwent.
Giving opinion on the automobile sector, he said that the bank had the highest exposure after the bank. Most focus is on OEMS. Especially 2 wheeler space has more exposure. 2 wheeler space is low on exports.
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