Valuation of PSU stocks has become less attractive, says Akhil Kalluri of Franklin Templeton. The rally in small caps can be attributed to retail liquidity and the deployment of excess cash. Kalluri discusses the valuation risk in the broader market and the March quarter earnings. He also comments on the possibility of a re-rating if BJP comes back to power. Kalluri highlights power, defence, and capex as hot investment themes. He further mentions the future prospects of financial giants and suggests an ideal asset allocation strategy with a long holding period.
India’s stock benchmarks jumped over 1% on Monday, led by gains in bank shares after ICICI Bank’s better-than-expected fourth-quarter results. The market may be on course to scale records though the spike in the Volatility Index or VIX, a fear gauge, shows that traders see risks to equities at current levels. The outcome of the US Federal Reserve’s rate-setting meeting on Wednesday is expected to determine the direction of equities in the foreseeable future.
Equity markets ended higher in a volatile trade on Monday, but the broader market continued to underperform. Analysts expect the markets to consolidate over the next few days while the broader market may continue to remain subdued. Here’s a breakdown of the pre-market actions, state of the markets, US stocks, Asian shares, and other relevant updates.
Domestic equities rallied for a second consecutive day following strong macro data and firm global cues. Investors are keeping an eye on services PMI data from Europe, UK, and India. The market is expected to sustain momentum with broader market support. Read more on Economic Times.
