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Expert Sees Upward Breakout for Stocks
27 Feb
Summary
- Global uncertainty and sector rotation are key market drivers.
- Geopolitical tensions are causing investor risk aversion.
- Opportunities exist in defence, infrastructure, and auto sectors.
Stock markets are currently experiencing volatility due to global uncertainty and continuous sector shifts, according to market experts. Abhishek Basumallick of Shree Rama Managers highlights that geopolitical tensions have fostered risk aversion among investors, leading to markets trading within a limited range rather than showing a strong upward trend. This cautious sentiment stems from ongoing global conflicts.
Basumallick also notes a trend of frequent sector rotation, where sectors that perform well for a short period experience profit-taking, and investment capital moves elsewhere. This indicates a focus on short-term gains over long-term investment. However, despite these near-term frustrations, Basumallick remains optimistic about the future.
He identifies potential investment opportunities in sectors such as defence, infrastructure, capital goods, chemicals, automotive, and cement. Basumallick suggests that stock valuations have become more attractive and aggregate growth has surpassed 12% after five quarters. He is confident that the markets will eventually break out upwards, especially within the context of a growing economy.
