• Business NewsBeta
  • Shows
    • Daily Show2+2=5Take it EasyRed AlertFormula GuruMoney GyanMoney CentralMoney timeJhatpat
    • Weekly ShowMoney ComicsEconomicomRealty CheckSmile and payMoney TalesSpend WiseCompanynama
  • Insurance
  • Savings
  • Loan
  • Stocks
  • Mutual Funds
  • Real Estate
  • Crypto
  • Tax
    • हिन्दी
    • తెలుగు
    • मराठी
    • বাংলা
    • ગુજરાતી
    • ಕನ್ನಡ
  • Close
  • Daily Show
    • 2+2=5
    • Take it Easy
    • Red Alert
    • Formula Guru
    • Money Gyan
    • Money Central
    • Money time
    • Jhatpat
  • Weekly Show
    • Money Comics
    • Economicom
    • Realty Check
    • Smile and pay
    • Money Tales
    • Spend Wise
    • Companynama
  • Insurance
  • Savings
  • Loan
  • Crypto
  • Stocks
  • Mutual Funds
  • Real Estate
  • Tax
  • Exclusive
  • Home » News » Stocks » Market will trade in a narrow range with a mixed bias, in the short-term

Market will trade in a narrow range with a mixed bias, in the short-term

This ongoing weakness has effect large caps more this week

  • Vinod Nair
  • Publish Date - March 8, 2022 / 11:53 AM IST
Market will trade in a narrow range with a mixed bias, in the short-term
FIIs have become a big seller in the Indian market. We have good buying from local MFs & domestic institutions, but not enough to maintain the market trend.

War dynamics strengthened during the week. An improvement in market trend, which was noticed during the start of the week turned hostile. The conflict between Russia-Ukraine got aggressive and fresh sanctions were imposed on Russia. The global market went on back-pedal given lack of buyers due to high volatility & rise in commodity prices due to supply constraints.

FIIs have become a big seller in the Indian market. We have good buying from local MFs & domestic institutions, but not enough to maintain the market trend. Retail investors are also buying, but the level of inflows has reduced after the correction in the market. We can expect improvement in sentiment, including FIIs, if war & commodity prices moderate, in the future.

This ongoing weakness has effect large caps more this week. Mid & Small caps have outperformed maybe in the context of the large carnage of the broad market in the last 3months. It did generate an opportunity for local investors to buy good stocks as the broad market looks a good pick on a long-term basis.

It makes sense to deploy the surplus cash in your portfolio, in a step-by-step manner assuming stability in equity market. Release of strategic oil reserves in India & abroad along with the increase in OPEC & non-OPEC output will be a big ease for crude prices & the Indian market.

Metal stocks did well this week due to rise of international steel prices owing to curtailment of Russian exports and high exposure of Russia & Ukraine in the global steel exports. Indian steel exporters are expected to benefit from this imbalance.

However, we need to note that this ongoing benefit is in the context of the ongoing war due to supply constraints. This trend can quickly change as per the status of war. Developing a high exposure to commodity & energy stocks today will work against the future trend. Instead, better will be to increase the exposure of stable stocks & sectors.

The ongoing downfall has improved the valuation matrix of the Indian market from expensive to fair, though not cheap. Nifty50 is trading just around the 5yrs averages of 18.5x on P/E and 2.8x on a P/B on a 1yrs forward basis. The near future of the market will depend on the war development. However, on a medium to long-term basis, it makes sense to start deploying the funds into equity.

But value buying will be the key to outperform the market. Sector wise the best will be Banks, Consumption, Capital Goods, Pharma and Telecom. They are trading at fair valuations, just below the averages of last 5yrs, and have a good long-term business outlook. Tactical pockets today are Gas, IT, Capital goods, and Pvt banks.

Next week, the Indian market will look at the state election exit poll data while the global market on war developments, BoE, and Fed policy. Based on current consensus, state elections outcome is unlikely to be a crucial factor rather than a short-term positive & negative reaction, accordingly.

Due to war uncertainties, central banks may bring a balance in its hawkish policy against earlier due to high inflation. It can provide a leeway to the market in the short-term.

(The article is written by Vinod Nair, Head of Research at Geojit Financial Services)

Download Money9 App for the latest updates on Personal Finance.

follow us

  • Facebook
  • Twitter
  • LinkedIn
  • Telegram
  • Youtube
  • Instagram

also read

  • What is target price for Nifty and Sensex?

    What is target price for Nifty and Sensex?

  • Why popular AMC stocks are down?

    Why popular AMC stocks are down?

Read more news on

  • markets
  • Nifty
  • Sensex
  • stock markets
  • stocks

Latest Video

SEE MORE
Fintech rules which RBI changed recently

Fintech rules which RBI changed recently

Updated: June 29, 2022
What is target price for Nifty and Sensex?

What is target price for Nifty and Sensex?

Updated: June 29, 2022
Why wheat flour prices increased after wheat export ban?

Why wheat flour prices increased after wheat export ban?

Updated: June 29, 2022
Is Petrol-Diesel price increase again on the cards?

Is Petrol-Diesel price increase again on the cards?

Updated: June 23, 2022
Why are edible oil prices falling?

Why are edible oil prices falling?

Updated: June 23, 2022
Why popular AMC stocks are down?

Why popular AMC stocks are down?

Updated: June 22, 2022
Why are car, two wheeler prices not falling?

Why are car, two wheeler prices not falling?

Updated: June 21, 2022
IRDA bats for reforms in the insurance sector

IRDA bats for reforms in the insurance sector

Updated: June 20, 2022
Open in App

Related

  • Exploring ways to balance your dollar Expenses

    Exploring ways to balance your dollar Expenses

  • Indecisive moves within a range: Rajesh Bhosale

    Indecisive moves within a range: Rajesh Bhosale

  • The trend is sideways with a negative bias: Vinod Nair

    The trend is sideways with a negative bias: Vinod Nair

  • Not the time to take money out off the table, continue to invest systematically: Krishna Kumar Karwa

    Not the time to take money out off the table, continue to invest systematically: Krishna Kumar Karwa

  • Is Nifty Bank entering bear market?

    Is Nifty Bank entering bear market?

  • Market will trade in a narrow range with a mixed bias, in the short-term

    Market will trade in a narrow range with a mixed bias, in the short-term

Videos

  • Hero MotoCorp drives in new Passion ‘XTec’
    Exclusive

    Hero MotoCorp drives in new Passion ‘XTec’

  • Should you invest in NBFC stocks?
    Stocks

    Should you invest in NBFC stocks?

  • GST Council may reduce tax on orthopedic, ostomy appliances, etc
    Exclusive

    FPI buying may resume in coming 1-2 quarters

  • Is Petrol-Diesel price increase again on the cards?
    Budget

    Is Petrol-Diesel price increase again on the cards?

  • Complaint process on loan recovery agent harassment
    Loan

    Complaint process on loan recovery agent harassment

  • TV9 Sites

  • TV9 Hindi
  • TV9Telugu.com
  • TV9 Marathi
  • TV9 Gujarati
  • TV9 Kannada
  • TV9 Bangla
  • News9 Live
  • Know this india
  • Money9 Sites

  • Money9 Hindi
  • Money9 English
  • Money9 Marathi
  • Money9 Telugu
  • Money9 Gujarati
  • Money9 Kannada
  • Money9 Bangla
  • Topics

  • Insurance
  • Savings
  • Loan
  • Stocks
  • Mutual Funds
  • Real Estate
  • Tax
  • Crypto
  • Exclusive
  • Daily Shows

  • 2+2=5
  • Take it Easy
  • Red Alert
  • Formula Guru
  • Money Gyan
  • Money Central
  • Jhatpat
  • Money time
  • Weekly Shows

  • Money Comics
  • Economicom
  • Realty Check
  • Smile and pay
  • Money Tales
  • Companynama
  • Spend Wise
  • Follow us

  • FaceBook
  • Twitter
  • Youtube
  • Instagram
  • Linkedin
  • Download App

  • Andorid
  • ios
  • Contact Us
  • About Us
  • Advertise With Us
  • Privacy & Cookies Notice
  • Complaint Redressal
  • Copyright © 2022 Money9. All rights reserved.