October saw a dramatic reversal in Indian stock indexes due to geopolitical tensions and large withdrawals from overseas portfolios. As investors’ attention has shifted to Chinese markets and worries about domestic earnings have surfaced, the Nifty 50 and Sensex have declined by 2.91% and 3%, respectively.
With this perspective, it expects a period of time correction in certain segments of the overall market, with investment flows probably going to large-cap stocks. It consequently thinks that the Nifty 50 may soon hit all-time highs. The firm continues to have a bullish long-term outlook on the market. It stated that two themes—”growth at a reasonable price” and “quality”—remain appealing at this time.
Certain cyclical industries are probably going to make a resurgence in the home market as a result of China’s anticipated recovery. Nonetheless, it believed that in the near run, large-cap private banks, telecom, consumer, IT, and pharmaceuticals offer a greater margin of safety. The firm keeps the Nifty 50 goal for March 2025 at 24,600, pricing it at 20 times the earnings for March 2026. Over a 12- to 18-month investing horizon,
It advises investors to stay invested and keep a liquidity buffer of about 10% in order to profit from drops by establishing holdings in reputable companies with solid earnings visibility.
