Sensex: Nifty might slip to 16,800 ranges and Sensex to 56K; use dips to purchase in these 5 sectors: Ravi Singh, ShareIndia

“Rate of interest hikes by the worldwide central banks have strengthened fears of recession whereas inflation nonetheless stays excessive within the world economic system,” stated Ravi Singh, Vice President and Head of Analysis, ShareIndia. In an interview with ETMarkets.com, Singh stated he’s extremely bullish on the auto sector and his high picks are , , and . Edited excerpts:


Indian fairness indices noticed a pointy dump in the course of the fag-end of the week. What dented the feelings for the home shares?

Indian fairness markets took cues from the weak spot within the US market after the 75 bps fee hike by the Fed. Aside from the US Federal Financial institution, central banks in Britain, Switzerland, Sweden, and Norway additionally hiked rates of interest.

These actions made fears of recession even stronger whereas inflation remains to be on the upper aspect. RBI MPC is scheduled on September 28-29 and the market appears to have already priced in a 50 bps fee hike.

The Rupee has hit a document low. Will this set off one other spherical of promoting by FIIs?
FIIs have already offered Rs 5,870 crore value of securities because the Fed’s fee hike in simply 3 days. Enhance in US 10-year bond yields and a robust greenback makes the US markets enticing main FIIs to depart rising markets. This promoting would possibly proceed in near-term additionally.

IT shares have been struggling to achieve momentum. What’s your outlook on the sector amid a weakening rupee? Are there some other sectors, which can see a silver lining amid the falling rupee?

IT shares are struggling for fairly a while. , , , and HCL have fallen 20-45 per cent within the final 6 months. A weakening rupee would possibly present a silver lining to the IT sector to some extent however when the basics usually are not so sturdy, it is not going to assist a lot.
A excessive share of IT sector revenues comes from the USA and different developed international locations. The IT sector may face headwinds from weakening calls for in these developed international locations.

There are different sectors that profit from weakening rupee resembling pharma, auto exporters, oil refiners and exporters, chemical corporations and textile exporters. A weakening rupee makes their merchandise cheaper in international markets.

Forward of the festive season, what’s your outlook on auto shares as a number of the high names are popping out with mega launches? What are your high picks from this sector?

I’m very optimistic on auto shares. Auto corporations are seeing a surge in demand, particularly within the EV section. In four-wheelers, Maruti might lead in gross sales numbers throughout festive season. Within the two-wheelers section, TVS and

might even see a leap in demand. Within the heavy automobiles section, can be the chief. My high picks can be Eicher motors, TVS, and Maruti.

Do you suppose that the worst is over for Indian markets or is there extra ache left? During which sectors do you see worth within the close to time period? How ought to buyers method the present market to make most of it?

In contrast with developed international locations, Indian markets have been fairly resilient and haven’t witnessed the autumn that different markets are witnessing. Authorities reforms and insurance policies have been an enormous assist to the Indian market encouraging financial development and boosting buyers’ confidence.

Nevertheless, Nifty might even see an additional dip in direction of 16,800 ranges and Sensex to 56,000 ranges within the present state of affairs. Buyers might contemplate this fall as a chance to choose worth shares from auto, FMGC, IT, banking and energy sectors. Buyers ought to divide their funding into three elements ranging from present ranges until decrease ranges of Nifty.

(Disclaimer: Suggestions, options, views, and opinions given by the specialists are their very own. These don’t signify the views of Financial Occasions)