Ukraine – Russia Oil prices crossed a 7-year high in Monday’s trade as tensions escalated. Shibani Sircar Kurian of Kotak Mahindra Asset Management while talking to Moneycontrol said that the continuous rise in crude oil prices may show its impact on inflation and interest rates. However, RBI has recently said that the rate of inflation in India is likely to decline in the second half of FY 2023 and will remain close to its medium-term target. This statement of RBI gives hope that it will continue to remain soft in its monetary policies.
Talking about the results of the companies in the third quarter, Shibani Sirkar Kurian said that the results so far have been largely as per the expectations. At present, we do not expect any major change in the earnings estimates of Nifty for FY 2022-23. He further said in this conversation that the trend of earnings upgrade, which has been seen for the last few quarters, seems to be weakening. It is worth mentioning that Shibani Kurien has about 17 years of experience in the Indian Equity Market.
The market has broken more than 4 percent in two consecutive trading sessions, can it fall further by 10 percent now? Responding to this question, Shibani Kurian said that considering the high valuations of the market and the difficulties in the global market, it seems that there will be some volatility in the domestic market going forward and consolidation may be seen in the near term but in FY 2023 the companies Given that earnings are expected to remain strong, it looks like there is good support for the equity market going forward.
Going forward, the market will be watching the elections in the states, the pace of vaccination, monetary policies of India and other important countries of the world, geopolitical risks and their impact on the price of crude oil and the results of the companies.
Talking about which stocks and sectors should be kept in the market going forward, he said that in this budget, the focus of the government has been on growth. The government is emphasizing on roads, railways, defense and housing. This stance of the government will be beneficial for stocks related to infrastructure, manufacturing, industrial and cement sectors. We should keep an eye on them.
Apart from this, investors should keep an eye on real estate, financial, among them also big private banks, export-related stocks and digital technology stocks, which can see good growth in the long term.
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