ETMarkets Fund Manager Talk: Largecap stocks may outperform mid/smallcap peers in 2024: Canara Robeco MF

Chatbot is an impressive tool with numerous applications in the trading world. However, it should not replace human judgment and critical thinking

Portfolio managers say the results will ensure policy continuity and lift prospects for the stock market as international investors become more confident in their India allocations ahead of national elections. Jefferies Financial Group Inc. sees cyclical stocks benefiting the most from the outcome of the polls while Nuvama Wealth Management says it has become more confident in the governments capital expenditure.

While Nifty is up over 11% so far in the calendar year, India's m-cap has increased by about Rs 55 lakh crore in 2023, led by the outperformance of small and midcap stocks as well as a flood of IPOs on Dalal Street. India had joined the coveted $3 trillion club in May 2021. The journey of market capitalization of Indian listed companies from $2 trillion (July 2017) to $3 trillion (May 2021) took about 46 months.

The Nifty, the most keenly tracked gauge in the world's fourth-largest equities market, could surge to 20,500 immediately, building on its record closing levels of 20,267.90 Friday.

The strong momentum seen last week has led to the hope of the momentum continuing in the week ahead. However, sustenance of the momentum depends on the outcome of certain crucial events such as the outcome of the assembly elections that took place in 5 states, the outcome of which will be out on Sunday.

“We think this is a great time for the aviation industry to make money. We have seen a very strong correction in crude prices, which is clearly reflecting profitability going forward and the demand has been very steady. We are still doing almost 4 lakh plus passengers on a daily basis.”

The IPO market also continued its momentum, which has seen five listings and out of which, four have exceeded expectations, led by Tata Technologies

“We ourselves, including me, used to tell everybody that there are many events on the horizon; one has to drip money slowly and steadily over a six-month period. But now back-to-back two or three of these concerns have got sorted out. So from that perspective, people have to change their thought process and have to front-load the investment. ”

“Do not chase the new stocks at new highs because you have the fear of losing out. . HCL Tech has been my top pick over there. I still think HCL Tech is headed to Rs 1500 and I would add a Persistent and Coforge on declines. It is better if you chase an ETF, that is the CPSE ETF, it comprises about 12 of the best blue chips of PSUs. ”

“I would stick my neck out that UltraTech is headed to Rs 10,000 and beyond. So stay with the market leader as a vested interest, ACC, Ambuja and UltraTech are in our portfolios and we are very bullish on that entire space. You can add Shree Cement over there, given that pricing power is very strong for them and their cost is the lowest in the world.”