Be prepared. We’re just at the beginning of the market party: Shankar Sharma

“The next couple of years should be better for pharma companies as the pricing outlook keeps on improving and the cost pressure is moderating as well for inputs like APIs, chemicals, etc. So, generic companies or those with a good specialty portfolio, should do well in the next few years.”

Market expert Hemang Jani predicts that the upcoming ICC World Cup and festive season will drive consumer demand in the next two quarters, benefiting sectors like QSR, hotels, and aviation. Food prices will be a key monitorable, but short-term spikes have been easily absorbed by the markets. Jani recommends investing in Titan, Indian Hotels, Zomato, and other consumption names like D-Mart. He also suggests considering stocks in the logistics space, such as Blue Dart and VRL Logistics, which are expected to benefit from the growth in consumer demand.

“There is a mini bubble in the broader market and one needs to be selective about that. Do not be too quick to jump into an index which has gone up 35% and stocks that have gone up 3X-5X. Okay, the stock has corrected 5%, 10%, let it stabilise, do some homework and then start nibbling.”

Several factors are contributing to the current market correction, including the strong US dollar index leading to outflows from emerging markets, concerns over the decline of the Chinese economy, and the Nifty going up 3,200 points without a break. However, India's overall outlook remains strong, and market corrections may present fresh opportunities for investors.

Reliance had been in the Rs 2,200-2,700 band for quite some time. It has come closer to the lower end of the band and there are definitely positive triggers which will come later – maybe listing of Jio or the retail arm getting demerged into a different company. All those triggers will come eventually. So valuation-wise, after the correction, it looks more attractive.

“In infrastructure, I would look at companies that are able to manage their cash flows better and even a company like Mazagon Dock has amazing cash flow management for what is otherwise a government company. They have net cash on their balance sheet because they get paid in advance. Some of those aspects matter more.”

In a market insight, Siddhartha Khemka highlighted robust domestic liquidity and strong interest in quality IPOs. He noted pharma, FMCG, and automotive as promising sectors. Khemka also pointed out Gravita India and Signature Global for their growth potential. Additionally, he expressed optimism for new-age tech stocks like Zomato and Policybazaar.

There are many facts about the logistics industry which might surprise many. Just to mention a few, a metal major has such a large fleet of owned trucks that the unit itself can be listed as a separate company and probably would figure in top 5 logistic companies. Second, in logistics, the major share is with the unorganized sector. Third right from a company which restructured its operations by selling some parts of business and then taking over another company to get into micro delivery space. To a company which increased its fleet size dramatically in the post covid era to cater to increased economic activity for auto and metal space. The whole logistics sector has seen a major shake up in the last few years.