Indian stock markets continue to surprise investors and analysts alike by climbing to newer highs every day. In just15 days of September, the Nifty50 has surged nearly 3% even when the world’s dominant indices like the S&P500 and Hang Seng saw cuts of 1% and 4%, however, with every possible surge in the index, there is a rising fear of perhaps a faster and deeper correction coming. Sudip Bandyopadhyay, Group Chairman, Inditrade Capital spoke to Money9 on how should investors approach this raging bull market.
“Confidence in the India growth story remains intact because of the regulatory boost by the government for enhancing manufacturing capabilities in several sectors. The PLI scheme is driving stocks to newer heights”, he said.
He believes that investors have been waiting on the sidelines for some correction to buy stocks but that correction never came and now they are in a bigger dilemma whether to enter the market now or not. What’s a better strategy for investors at this point, he says, is to buy select stocks.
“There are some promising sectors like IT and Pharma, where one can look for opportunities for a time horizon over one year”, he added.
Speaking about the new government initiatives he said that PSU banks will be bigger beneficiaries of the new bad bank while for the telecom relief package, Bharti Airtel will benefit the most and if one wants to play the auto story post the announcement of the PLI scheme for auto, it should be the component makers which should be on the radar of investors.
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The economy is recovering but GDP is expected to be only slightly larger than it was in pre-pandemic 2019-20.
The NIP will help augment India’s productive capacity, contribute to our overall growth and bring down the logistics costs, improving competitiveness
Diversification is key and should be followed for stable and steady returns in the long run.
There is a need to continuously facilitate trade and industry and provide thrust to the growth promising sectors of Indian economy.