Indian Stock Market at record highs. Sectors and stocks that experts are betting on

The unprecedented win streak has pushed Indias stock market valuation above $4 trillion for the first time, closing in on Hong Kong. Survey respondents pointed to inflows from overseas investors, who have bought $20 billion worth of Indian stocks on a net basis so far this year, reversing a record withdrawal in 2022.

We find ourselves in an intriguing phase of the macroeconomic cycle, where global concerns about a recession are prevalent.

Investors seeking to enter the market without spending huge sums can consider investing in these 7 Nifty bluechip stocks costing less than INR 1,000 ($14), according to ET Markets. Coal India, SBI, ITC, Tata Consumers, and others make up the list. Largecaps are more reliable for capital preservation and present less of a chance of loss in a fluctuating market. These 7 companies have logged sales and profit growth surges of more than 10% on a YoY basis, while most stocks have risen anywhere from 15-30%.

The current boom in IT stock prices is what has increased the market capitalization of major technology stocks.

Investors should be selective while participating in the market as some sectors are overvalued. However, many sectors and stocks are showing growth after years of stagnation and are available at reasonably good valuations, making it a good time to invest. The staple and chemical sectors are showing some signs of overvaluation, as are some pockets of the tech sector. In contrast, the utility sector looks interesting due to lack of investment in renewables or power in the last few years.

NRIs to contribute 12% to the Indian real estate sector by 2023 and have contributed $15 billion in 2022.

Even as the stock market corrects, small and midcap stocks are refusing to leave the party. On a number of days the breadth of the small cap segment is better than large caps. Coming on the list are auto ancillary stock, real estate and infrastructure companies. ET screener powered by Refinitiv’s Stock Report Plus applies different algorithms & filters to all BSE and NSE stocks, and lists stocks which fulfill the various criteria as specified into the algorithms & filters to find those which might help navigate the stock market.

Crude has corrected substantially from the 2022 highs and since that determines the prices of a lot of downstream products, it can provide a cushion both to the economy, as well as to corporate earnings.

Stock market today is in ‘sideways to positive’ trend and hence ‘buy on dips’ is an ideal strategy for intraday trading, say experts

I think markets still do well because globally still investors are quite scared, positioning is low on equities, even domestic mutual fund, equities and cash positions have moved up.