Kotak Institutional Equities It is said that BJP’s victory in 4 out of 5 states has put an end to the trouble, but the rise in crude oil prices and rise in domestic inflation still remain big risks in this era of Russia-Ukraine war. . Kotak Institutional Equities in its model portfolio SRF Hindalco Industries, GAIL India and Power Grid Corporation have reduced the weightage.
Kotak Institutional says geopolitical tensions in Eastern Europe have increased risk in Hindalco Industries, GAIL India and Power Grid Corporation.
Kotak Institutional The BJP has further said that with the victory of BJP in 4 states, the government will get the strength to pursue its policy of governance and economic reforms, but these victories will not give any big increase to the BJP’s power in the Rajya Sabha because the victory of Uttar Pradesh will be recognized as Rajasthan. And Andhra Pradesh’s deficit will make it ineffective.
Kotak Institutional It also says that the Russia-Ukraine conflict is a big risk for the whole world regarding oil prices and inflation. Now it is only expected that OPEC countries may think of increasing their production. He further said that high prices of crude oil and industrial metals could increase inflation all over the world, forcing central banks around the world to hike interest rates. If this fight progresses, then more big sanctions may be imposed on Russia, which can have an adverse effect on India.
Where are the opportunities in this fall
Kotak Institutional Equities says that with the rise in geopolitical tensions, the Indian equity market has seen a decline of up to 16 percent from its record high. Although there has been a recovery from the lower levels in the recent few days and value buying has been seen, yet in this moment there are many stocks which have declined by 30-70 per cent. This sharp fall in the market has made valuations of all the stocks attractive. In such a situation, the brokerage house says that due to the recent correction in the market, the valuation has become better than before. Apart from this, rising crude oil prices will not have any major impact on the earnings of the consuming stocks. If crude oil prices remain at their current high levels for a limited period of time, then it will not have much adverse effect.
Kotak Institutional Equities The risk-reward ratio of Banks, Diversified Financial, Capital Goods, Real Estate and Specialty Chemicals looks good at the moment, while valuations of most of the growth stocks are looking rich.
Kotak Institutional Equities has added SRF to its model portfolio. Kotak says SRF has little reliance on crude derivatives in its core business of chemicals and polymers, but the company’s technical textiles and packaging business will see an adverse impact of rising crude oil prices. However, its impact will have to be borne by all the companies in the industry. Based on this logic, Kotak has increased the weightage of SRF in its model portfolio by 1.50 per cent.
Market continues to rise for the 5th consecutive day, let’s take a look at the reasons which are giving fuel to the market
Significantly, the shares of SRF have seen a fall of 9 percent in the last one month. It should also be mentioned that Kotak has added to its model portfolio. GAIL India, Hindalco Industries and Power Grid Corporation The weightage has been cut by 30-50 basis points.
It is worth noting that during the last 15 days, the performance of these 3 stocks has been very good. In the last 15 days, GAIL has seen a rise of 13 percent, Hindalco by 10 percent, Power Grid by 8 percent in this fall of the market. At the same time, the Nifty50 index has fallen 0.2 percent in the same period.
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