Summary: Markets witnessed troughs and peaks of volatility in Samvat 2078. Liquidity reversal, policy tightening, the Russia-Ukraine geopolitical crisis and rising inflation were the key triggers behind the volatility. While the first half of the Samvat saw higher commodity prices of base metals and crude oil, a trend reversal was seen in the second half, due to policy tightening and fears of slowdown in global growth. Both the frontline indices Nifty50 and the S&P BSE Sensex shed up to 2 per cent since last Diwali. However, they outperformed global peers such as the S&P 500 and the emerging market index, which bled up to 31 per cent. Going ahead, analysts believe that the outperformance of domestic indices against global peers is sustainable in the long-run. Neeraj Chadawar, Head - Quantitative Equity Research, Axis Securities, says India’s macro-setup is a positive. NSE Nifty profitability at all-time high in Q1FY23. India’s outperformance sustainable in Samvat 2079. Technical charts suggest that the Nifty50 and the S&P BSE Sensex can reach all-time highs of 21,000 and 65,000 levels, respectively, during the next Samvat. Against this backdrop, brokerage houses suggest stocks that investors should bet on to re-ignite their portfolio for Samvat 2079. Brokerage firm SBI Securities suggests investors to bet on HDFC Bank, ITC, Bank of Baroda, United Spirits, Sumitomo Chemicals, and Whirpool India for Samvat 2079, with upside potential in the range of 10 to 19 per cent. IDBI Capital, on the other hand, advise investors to pick names like Kolte Patil, Mahindra CIE, Tata Power, Blue Dart, with up to 35% upside potential. Likewise, Axis Securities and ICICI Direct, too, have suggested top picks for Samvat 2079. As regards today, quarterly results, rupee movement, crude prices and FII flows will dictate market trends. Besides, investors will closely track the Q2 report card of ITC, Bajaj Finance, Asian Paints, Axis Bank and Tata Consumer.
