New Delhi ,oct 13
The outlook for India’s stock market remains positive in the long run, even though short-term market volatility has increased, according to Anand Rathi report.This has been driven by factors like geopolitical tensions, fluctuating crude oil prices, and adjustments by Foreign Institutional Investors (FIIs) due to China’s recent economic stimulus.
Although the ongoing Iran-Israel conflict poses a global risk, crude prices are unlikely to stay above USD 88-90 due to weak international demand.Additionally, strong domestic investments continue to support the market. Despite short-term fluctuations, the long-term growth story for India remains intact, with sectors like discretionary consumption, two-wheelers, IT, cement, and large banks still favored for investment.
The second quarter is likely to show mixed results due to factors like heavy rainfall in August and September, which disrupted certain sectors, including agrochemicals and commercial vehicle sales.The extended monsoon and slow festive sales could further impact growth. Infrastructure projects and cement company volumes may face delays due to upcoming elections, erratic weather, and slow budget allocations.
However, some sectors, including hospitals, alcoholic beverages, two-wheelers, jewelry (benefiting from customs duty cuts), and consumer durables, are expected to perform well.
