Markets May Remain Range-Bound, Says Shrikant Chouhan of Kotak Securities; Bets On Auto, Real Estate

The Indian stock market, Sensex and Nifty, which opened after a day’s break on the first day of September, couldn’t mirror the gains made on August 30 as negative global cues dragged the benchmark indices lower by more than 1 per cent lower on September 1. Domestic equities fell as global inflation concerns weighed on investor sentiment. Besides, a weaker-than-expected domestic Q1FY23 GDP data, along with a marginal downtick in Manufacturing PMI for August, also worried market participants.

According to experts, in September there is no fixed event and the domestic market is gearing up for the much-awaited festive season, leading to a mixed monthly performance.

Shrikant Chouhan, head of equity research (retail), Kotak Securities Ltd., in an exclusive interview with spoke about how the domestic markets are likely to perform in September. He said that “In the absence of a change in macro factors at 17,500, there is very little upside for the market. The currency is trading at 80, which will reduce inflows if energy prices remain high for a long time. We expect the market to be limited and volatile within a broad trading range.” Further, here are the edited excerpts from the interview.

Closer to Home What Will be the Factors That Will Affect the Market Sentiments? Also, Will the Upcoming Festive Season Have an Impact?

The domestic consumption story remains intact and in fact, our exporters have also outperformed in the current year, which should help the market to improve sentiment in the medium to long term. The festive season will help the auto and real estate sector in the coming days. We also need to keep a close watch on the movement of FIIs as they have started buying in emerging market stocks.

Will Global Cues Affect the Indian Markets in September?

Of course, world markets are watching the Fed’s action to fight rising inflation in the US. In mid-September, inflation data in the US will bring volatility to asset classes.

Top Stocks to Pick in September

We like M&M, Brigade, Dalmia Bharat and ICICI Bank should outperform stocks.

What are the Sectors you are Bullish on and Why?

Stocks and sectors related to auto, real estate, cement, and financial stocks will remain in the headlines. As these sectors publish their monthly sales numbers, investors can invest in them without waiting for the quarterly numbers, which will come in the month of October.

What is the September Technical Outlook for Nifty?

The market should remain between the trading range of 18,000 and 17,000. Above the 18,000 level, the Nifty would rally till 18,300. Below the 17,000 level, the Nifty would pull up to 16,600. If the macro factors start favoring then it would help our markets to cross the previous all-time highest levels.

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