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.
Markets took a breather after the recent surge and ended marginally higher on Wednesday. Shares of Bajaj Finance, Nestle, Tech Mahindra, IndusInd Bank, Axis Bank, HUL, Kotak Bank among others will be in focus due to various related developments or quarterly earnings. Read more.
Vinit Bolinjkar, Head of Research at Ventura Securities, warns of a prolonged market correction if the Middle East war plays out like the Ukraine-Russia conflict in 2022. He advises to take profits off the table and be cautious in the face of uncertainty.
