IPO Market: ETMarkets Good Discuss: IPO prone to decide up in 2023; Nifty goal seen at 21,035: Amnish Aggarwal

“We stay bullish on Indian markets and anticipate markets to scale new highs in 2023. We now have a 12-month Nifty goal of 21,035,” says Amnish Aggarwal – Head of Analysis, Prabhudas Lilladher Pvt Ltd.

In an interview with ETMarkets, Aggarwal who has an expertise of round 20 years within the monetary markets, mentioned: “We anticipate IPO market to enhance in coming 6 months than what we have now seen prior to now 2-3 quarters” Edited excerpts:

As we method the final month of the yr 2022 – we have now reclaimed all-time highs. The place do you see markets headed in 2023?
We stay bullish on Indian markets and anticipate markets to scale new highs in 2023. We now have a 12-month Nifty goal of 21035.

The yr 2022 was stuffed with volatility and international occasions which impacted the Indian markets. Will the headwinds of 2022 proceed to hang-out fairness markets in 2023 as effectively?
2022 was impacted by FII promoting, Russia Ukraine warfare, excessive inflation, and a pointy enhance in rates of interest. We imagine that inflation has principally peaked and the tempo of rate of interest hikes will probably be decrease within the coming months.

Total commodity inflation has peaked, and India appears higher positioned on account of decrease inflation (home meals manufacturing) and the import of Russian oil and comparatively robust demand.

Though geopolitical uncertainty continues and the US slowdown fears stay. The worst appears over because the state of affairs stands at present.

Which sectors are prone to hog the limelight in 2023?
2022 noticed a sectoral churn as shopper, know-how, E-Com, IT, and Pharma had been on the receiving finish. 2022 noticed a powerful comeback by Capital Items, Specialty chemical compounds, Hospitals, Telecom, Retail, QSR, Journey, and PSU’s outperformed.

We imagine the churning will proceed and we anticipate sectors like Banks, Capital Items, Hospitals, Insurance coverage, Auto, and choose shopper shares to outperform in the course of the coming six months.

Charge continued to rise in 2022 – do you see additional fee hikes within the yr 2023?
We imagine fee hikes would possibly proceed for one more quarter or so; nevertheless, the tempo of hikes will decelerate.

Lots relies upon upon international inflation and the development in international rates of interest. A probable slowdown in a fee enhance within the US and different international locations will put together the bottom for a pause in rate of interest hikes in India as RBI has been climbing charges to take care of a ample hole between G-sec charges and US charges.

Amid fee hikes, international headwinds, and slowdown considerations — how ought to one decide shares in 2023?
There isn’t a mounted technique or philosophy in inventory choosing. We imagine that the bottom-up method with robust money flows will probably be higher within the coming yr.

We’d are inclined to keep away from firms that may face structural headwinds on account of international power, mobility and know-how transition in coming years.

How are earnings prone to pan out in 2023?
We anticipate earnings progress momentum to enhance given robust demand and peaked out commodities. We estimate 13.3% NIFTY EPS progress in FY24 which will probably be led by Auto, Cement, Shopper, Pharma, and Telecom.

As we have now already hit unchartered territory – what’s the form of fundraising you see for IPO? Do you see extra SME IPO hitting the Avenue?

We anticipate the IPO market to enhance within the coming 6 months to what we have now seen prior to now 2-3 quarters. We anticipate buyers to stay cautious submit the sharp losses in a few of the IPO together with tech IPOs of final yr.

SME section has seen a pointy enhance in IPO prior to now 6 months. A rise in capital flows and personal fairness funding can sluggish that down within the coming couple of quarters.

In response to two depositories, NSDL and , the overall variety of demat accounts is 9.28 crore as on April 30, 2022. This quantity is nearly thrice the quantity recorded as of March 2020. What’s the form of progress you foresee for retail buyers in 2023?
The variety of retail buyers and demat accounts has elevated at a pointy tempo submit covid given the run up in markets and lots of people shifted to buying and selling in markets as different avenues had been non-operational at that cut-off date.

We imagine submit the sharp enhance within the variety of retail buyers prior to now 2 years, now the quantity will enhance at a extra reasonable tempo within the coming years.

(Disclaimer: Suggestions, ideas, views and opinions given by the consultants are their very own. These don’t symbolize the views of Financial Instances)