Diwali 2023: Markets fairly resilient amid global challenges, says Mahesh Patil of Aditya Birla Sun Life MF

Mahesh Patil, Chief Investment Officer (CIO) at Aditya Birla Sun Life Mutual Fund, said the domestic equity benchmarks displayed resilience. "Our markets (both headline and broader) have been fairly resilient on the back strong economic growth, given high interest rates and geopolitical tensions. We expect the domestic markets to be higher from where they are," the market veteran told Business Today TV during a special show on Diwali 2023.

We are positive on the automobile, banks, financials, real estate, pharma and healthcare sectors as we go forward, Patil mentioned.

On the information technology stack, he said, "There could be one or two more quarters of pain but the IT sector could be a contra bet to look at."

When asked about the small- and mid-cap spaces, Patil said the broader markets saw a huge amount of rally in the last one year. "Over the longer term, small-cap and mid-cap may continue to do well. Although, there could be some volatility in the near term. At this moment, we would prefer large-caps as the risk-reward is much better there. In small-cap and mid-cap, one needs to be stock specific," the market expert suggested.

In response to a query on the upcoming initial public offerings, he said, the IPO market will not be as easy as it was earlier going forward.

Meanwhile, bourses BSE and NSE will conduct a one-hour special 'muhurat' trading session on Sunday (November 12), marking the beginning of a new Samvat 2080 - the Hindu calendar year that starts on Diwali.

The symbolic trading session would be held between 6 pm and 7.15 pm, the stock exchanges said in separate circulars. This includes a 15-minute pre-market session, the stock exchanges said in separate circulars.

It is believed that trading during the 'muhurat' or auspicious hour brings prosperity and financial growth for the stakeholders.

Overall, Indian equities have outperformed global markets significantly in Samvat 2079 and the outperformance is expected to continue in Samvat 2080.

(Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.)

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