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.
With India VIX jumping 43% in May, market participants are advised to be cautious and adopt a wait and watch policy. Senior Vice President-Equity at Angel One, Aamar Deo Singh, recommends focusing on quality stocks with a longer-term perspective in an SIP mode. He discusses the impact of the election results, upcoming levels to watch, earnings performance, and suggests options for investors and traders in various sectors. Singh also gives insights into regulatory actions and the trend in PSU stocks, defence sector, smallcaps and microcaps, and specific stock recommendations.
Anish Tawakley, Deputy CIO – Equity at ICICI Prudential AMC, warns about valuation concerns and gradual trimming of PSU holdings. The team focuses on spotting recovery in the real estate cycle and monitoring capacity utilization, earnings expectations, and manufacturing performance.
Geopolitical concerns, rising crude oil prices, and spikes in US treasury yields warrant caution in equity markets, says Akhil Chaturvedi, Chief Business Officer at Motilal Oswal Asset Management Company. While short-term volatility may occur, these concerns are less likely to have a lasting impact on the markets. He also discusses the long-term implications of geopolitical concerns on the commodity cycle, fund selection strategies, expectations from September quarter earnings, the suitability of PSU stocks, and the sectors to watch during the World Cup and festive season.
State Bank of India is among the 8 PSU stocks showing bullish signals as the MACD line crosses the signal line. This indicates a potential increase in the stock price. MACD (Moving Average Convergence Divergence) is a momentum indicator used by technical traders to determine bullish or bearish trends. Other PSU stocks showing bullish signals include Mishra Dhatu Nigam, UCO Bank, Central Bank of India, ONGC, NTPC, Punjab and Sind Bank, and NLC India. Read more to find out the potential market movements.
