While retaining his bullish view on the Indian equity market, Sanjiv Bhasin, director, IIFL Securities, advised investors to continue to add quality stocks on dips as the domestic equity market may remain volatile in the near-term following global cues. The benchmark BSE Sensex retreated marginally 0.20 per cent year-to-date (YTD) following sustained outflows by foreign institutional investors, rising inflation and the ongoing tensions between Russia and Ukraine.
The market veteran believes that the BSE Sensex may be closer to 65,000/67,000-mark by December 31, 2022. On the other hand, he sees Nifty nearing 21,000, indicating an upside of over 20 per cent from the current levels.
For portfolio allocation, he emphasised that investors should zero in on banking, realty, capital goods and select auto original equipment makers. For stock-specific investors, the market watcher suggests stocks like Godrej Properties, DLF, Siemens, Priamal Enterprises, Axis Bank, Union Bank, IRB Infrastructure and Sterling and Wilson Renewable Energy for the long term perspective.
Foreign portfolio investors have sold shares worth over Rs 80,000 crore since October last year. He believes that the sell-off has been absorbed by the large pool of constant and growing ETF flows with mutual funds seeing best ever flows in over 30 years.
“Most selling may be coming to an end and now we feel from April end or early May could see the return of overseas flows as India outperforms in emerging markets with improving macro, end of Covid and better corporate results,” Bhasin told Business Today.
Commenting on the Life Insurance Corporation, which is likely to launch its initial public offering (IPO) next month, Bhasin added that the insurer can definitely be among the top three players in terms of the market capitalisation post listing.
“LIC is the largest player in the country with both assets in equity and debt. It has huge unlocking potential despite being at the losing end of market share from the private insurers,” he said.
Going ahead, he believes that rising crude oil prices, tightening of interest rates by the US Federal Reserve, geopolitical tensions and rising inflation are key risks for markets.
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