Indian equity markets rebounded on Monday, led by banking stocks, after testing key support levels. While the near-term bias remains positive, the market is expected to trade within a narrow range. Experts see improving technical signals in broader markets and recommend a selective buy-on-dips strategy, highlighting opportunities in IDFC First Bank and Britannia.
While near-term market direction remains uncertain, Anshul Saigal emphasizes a long-term perspective, highlighting India's strong growth and macro stability. He anticipates accelerating earnings growth and sees attractive opportunities in sectors like IT, metals, and renewable energy, with limited downside for microfinance companies.
Andrew Freris criticizes the Federal Reserve's rate cut, deeming it based on outdated data and ignoring accelerating inflation. He maintains a negative outlook on US equities, particularly tech and AI stocks, citing earnings disappointments and uncertain future returns.
Defence stocks face continued selling pressure, with technical indicators suggesting further weakness. Geojit Investments' Anand James advises caution against premature bottom-fishing in the sector. Meanwhile, the Nifty Metal index shows bullish signs with strong upside potential, and specific stock recommendations are provided for Anantraj and Sequent.
The government's 100% FDI in insurance is expected to boost sector penetration rather than disrupt established players, according to Nitin Raheja. While smaller insurers may benefit from capital infusion, larger ones are well-capitalized. The move also allows combined life and general insurance operations, offering scale benefits and a positive outlook for the sector.
