With Nifty50 reclaiming 17,500, what's next? Experts from JPMorgan, Motilal Oswal and more weigh in

SUMMARY

Indian share markets so far haven't reacted to the contagion fears associated with the probable fall of Evergrande Group, China's property giant. The Indian equity benchmarks, Nifty and Sensex, reclaimed 17,500 on Tuesday, closing almost a percent higher and shrugging off cues from Wall Street. Can Indian markets maintain this momentum? Here's what experts are saying

By CNBCTV18.comSept 21, 2021 4:05:57 PM IST (Published)

Indian market has peaked for the year | Mixo Das, JPMorgan: For the Indian market, the long term outlook looks really good. But in the near term, maybe it's kind of peak for the year and we could see the market just going sideways from here because, at current valuations, it's very difficult to justify further upside in the major segments.

Focus on resilient domestic companies | Susmit Patodia, Motilal Oswal AMC: We continue to like domestic resilient companies. I think COVID briefly taught us the importance of resilience in companies. And then we forgot everything as growth took over resilience. I think these container shortage issues, or even Evergrande will teach us again how important resilience is. So, I look inward, look at companies left unaffected. So, we like banking and life insurance. And services, like technology companies, these are the sectors we like. Because these are the domestic focus, they are not impacted so much by the issues happening the world.

Constructive on markets in medium-term | Shibani Sircar Kurian, Kotak Mahindra AMC: If you look at the markets from a medium-term perspective, we continue to remain very constructive on the markets. There are three key elements that we are focusing on when we are taking our view on the market. First, on the fundamentals and earnings. We believe corporate earnings cycle is at the cusp of a significant move over the next couple of years. We believe that fundamentally from an earnings perspective, the cycle continues to remain strong. The second aspect is sentiment. On the sentiment front with vaccinations improving, I think sentiment has also improved. While the third wave remains a risk our hope is, if and when the third wave occurs, the impact—both from an economic perspective and health infrastructure perspective—would be lower than what we saw in the second wave. Finally, flows continue to remain very strong, both from an FII perspective as well as domestic flows, both retail and institutional participation. So we do believe that given the fact that markets have had a great run, there could be some degree of volatility in the near-term. But in the medium-term perspective, we remain very constructive on the market.

India is doing well on its own | Leo Puri, JPMorgan: India, for a long time actually, regulated sectors like housing, financial sector, education. We (India) have already been regulating these sectors. In China, it’s been perceived as a sudden and abrupt pivot. In the longer run, it will probably bring more stability to China. Again, is there a rush out of China into India? Probably not actually, I think it will be back towards developed markets. India has to attract interest, again, entirely on its own merits. Unfortunately, I think we are getting better at doing that, at this point.

Market will remain cautious | Yash Sawant, Angel Broking: Mounting fears over prospects of debt default by Chinese property developer Evergrande Group sent a panic wave across financial markets. Investors rushed towards the safe-haven Dollar following worries over the probable impact on the global economy amid the widespread of the Delta Variant. But this cautiousness is expected to remain cautious ahead of the outcome of the two-day Federal Open Market Committee meeting which begins today's i.e., 21st September’21.