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“We see limited downside from the current levels; don’t expect Nifty to breach the previous low of 23,263 made on November 21, 2024,” says Gaurav Bhandari , CEO, Monarch Networth Capital Limited . In an interview with ETMarkets, Bhandari said: “Even from the fundamental perspective, valuation doesn’t look expensive with the benchmark index trading at a forward 12-month PE multiple of ~ 21x” Edited excerpts: Thanks for taking the time out for us. We have witnessed a volatile November as markets keep moving from bullish and bearish phases.
What is your call on markets? Gaurav Bhandari: We see limited downside from the current levels; don’t expect Nifty to breach the previous low of 23,263 made on November 21, 2024. Even from the fundamental perspective, valuation doesn’t look expensive with the benchmark index trading at a forward 12-month PE multiple of ~ 21x. Market might be down by about 8-10% from the highs in terms of benchmark levels.
But, are you getting any bargain buys at current levels? Gaurav Bhandari: Stocks looking good at current levels – BEL (Defence), HG Infra, Elecon Engg, Inox India (Infra/ Capital Goods), GPIL, NALCO/ Hind Copper (Metals), TCPL Packaging (Packaging), KPIT Tech (Software), and CHOLAFIN (NBFC). Trump pledges 25% tariffs on Canada and Mexico, and deeper tariffs on China. Do you see any impact for India Inc.
? Gaurav Bhandari: India is relatively insulated than other economies as we are not an exports driven economy like China, Japan & Germany. Exports account for ~22% of the GDP while US share in India’s total exports stood at just ~10%. Don’t see a material impact on the Indian companies with the regime change in the US.
Even the IT companies are now much better placed (because of the higher share of local population in the onsite jobs) to face tough immigration policies under Trump’s regime. Stock Trading Options Trading Made Easy: Options Trading Course By - Anirudh Saraf, Founder- Saraf A & Associates, Chartered Accountant View Program Stock Trading Options Scalping Made Easy By - Sivakumar Jayachandran, Ace Scalper View Program Stock Trading Derivative Analytics Made Easy By - Vivek Bajaj, Co Founder- Stockedge and Elearnmarkets View Program Stock Trading Dow Theory Made Easy By - Vishal Mehta, Independent Systematic Trader View Program Stock Trading Macroeconomics Made Easy: Online Certification Course By - Anirudh Saraf, Founder- Saraf A & Associates, Chartered Accountant View Program Stock Trading Market 101: An Insight into Trendlines and Momentum By - Rohit Srivastava, Founder- Indiacharts.com View Program Stock Trading Commodity Markets Made Easy: Commodity Trading Course By - elearnmarkets, Financial Education by StockEdge View Program Stock Trading Stock Markets Made Easy By - elearnmarkets, Financial Education by StockEdge View Program Stock Trading Technical Analysis Made Easy: Online Certification Course By - Souradeep Dey, Equity and Commodity Trader, Trainer View Program Stock Trading Options Trading Course For Beginners By - Chetan Panchamia, Options Trader View Program Stock Trading Stock Investing Made Easy: Beginner's Stock Market Investment Course By - elearnmarkets, Financial Education by StockEdge View Program Stock Trading Technical Analysis for Everyone - Technical Analysis Course By - Abhijit Paul, Technical Research Head, Fund Manager- ICICI Securities View Program Stock Trading Technical Trading Made Easy: Online Certification Course By - Souradeep Dey, Equity and Commodity Trader, Trainer View Program Stock Trading Renko Chart Patterns Made Easy By - Kaushik Akiwatkar, Derivative Trader and Investor View Program Stock Trading Technical Analysis Demystified: A Complete Guide to Trading By - Kunal Patel, Options Trader, Instructor View Program Stock Trading Point & Figure Chart Mastery: A Comprehensive Trading Guide By - Mukta Dhamankar, Full Time Trader, 15 Years Experience, Instructor View Program You Might Also Like: Stock-level steep correction: An opportunity for contrarian bets? Is there any beaten-down theme that is now attractive as the risk-to-reward ratio is more comfortable? Gaurav Bhandari: Metal (GPIL, NALCO), Infra/ Capital Goods (HG Infra, Elecon Engg, Inox India) & NBFC/ HFC’s (Cholamandalam) What are the queries that you get from NRI clients? Gaurav Bhandari: NRIs remain invested in the markets.
They are enquiring about the stocks/ sectors where the money can be invested after the recent correction in the Indian Equities There is too much chatter about FIIs taking out money but they have been consistent buyers in debt. How do you think investors should read this? Gaurav Bhandari: India’s dependence on foreign money has come down due to massive channelization of domestic savings into the capital market, evident from the surging SIP flow. Consequently, foreign ownership in the stocks has been declining over the years - it stood at about 16.
4% in Sep’24 marginally higher than the DII’s stake at 16.2%. In comparison, the gap between FII and DII ownership was about 10% in March 2015.
You Might Also Like: Rural revival and government spending set to boost market sentiment: Devang Mehta Besides, FII flows have already started reversing in the equities in the past few days as valuations have become more benign. On the other hand, FII buying in the domestic debt market has moderated due to the spike in US bond yields after the Presidential election results and the consequent narrowing of the spread between US and Indian bond yields. In light of a strong dollar and its global repercussions, how do you see currency movements affecting Indian investments? Gaurav Bhandari: Indian currency remains less vulnerable to strong Dollar, due to inherent economic strength, healthy forex reserves and subdued crude prices.
The India Rupee has been more resilient than most of the other EM currencies against the strengthening USD, post the announcement of Donald Trump victory in the US Presidential elections. You Might Also Like: Sector picking challenging in current market bounce: Rohit Srivastava This coupled with robust growth opportunities keep India a better investment destination within the EMs. Besides, recent weakness in INR offers attractive entry points to the investors for fresh inflows.
(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel ).
