Brokerages say valuations to attract interest in Indian stocks

Attractive valuations are expected to spur positive buying sentiment in Indian stock indices over the next week.

Besides, buying interest in energy, pharmaceutical and media stocks will support the upward trajectory of the market.

However, fiscal year-end considerations as well as risks arising from geopolitical developments are likely to halt any sharp upward moves.

Devarch Vakil, Vice President of Retail Research, HDFC Securities.

“Barring any untoward mishap in the geopolitical arena, the positive patterns seen in the indices of medium and small cap companies bode well for the overall health of the markets.”

The benchmark indices ended Friday with modest losses amid profit taking after last week’s rally.

Moreover, overall market sentiment was negative due to the ongoing Russian-Ukrainian conflict.

As a result, the NSE Nifty50 Index is down 0.8 percent and the S&P BSE Sensex Index is down 0.9 percent for the week.

As per provisional figures, industrial investors were net sellers of Rs 5,344 crore in the stock markets, and private equity firms were net buyers of Rs 2,821 crore.

“We are seeing outflows from the Indian markets, and they appear to be part of profit locking or rebalancing, and therefore do not appear to be a major cause for concern,” said Lekhita Chiba, Senior Research Analyst, Capital Via Global Research.

“With the economy returning to normal, in line with third-quarter results for various companies and demand returning to pre-Covid levels across sectors, we expect the broader outlook for Indian markets to remain constructive.”

Siddhartha Kimka, Head of Retail Research at Motilal Oswal Financial Services, said, “Nifty has moved within the 17000-17400 range over the past six days with some visible selling pressure at higher levels. Overall, we remain positive in the market and expect that to move gradually towards 17600. -17750 areas in the near term.

“And strength in heavyweight sectors such as ‘minerals, energy, IT and media’ is supporting the market.”

(Rohit Vaid can be contacted at [email protected])

– Jans

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(The title and image for this report may have been reformulated only by the Business Standard staff; the rest of the content is automatically generated from a shared feed.)

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