Also, why Dinesh Kumar Khara sees inflation as positive to some extent for economy, and more
India's manufacturing sector is poised to benefit from the ongoing government's emphasis on indigenization through the PLI programme spreading across the sectors. Further post-COVID China Plus strategy adopted by many companies to extend value chains to secure supply chain and improve scale and profitability.
"We expect FY23 earnings to get marginally affected owing to a rise in crude oil and input cost. Longer than expected lockdown in China has hampered the global supply chain. If the situation persists we might have to lower our earnings expectations at least for the first quarter of FY23."
We are comfortable with growth prospects in the IT sector in the medium term, but valuations comfort had been eroding due to sharp run up. If the current correction in IT continues it will offer a good entry point.
Engineering major Larsen & Toubro announced its financial result for financial year 2022 on May 12. The management said it was a challenging year due to COVID-related disruptions, geopolitical tension, and deferment of orders in the home market. The company has given a guidance of 12-15 percent growth in order inflow and revenue for 2022-23. It also announced that it has finalised its five-year strategic plan, Lakshya’26, which will increase its revenue to Rs 2.73 lakh crore by FY26 from 1.36 lakh crore in FY21. L&T’s CEO and managing director SN Subrahmanyan spoke to Moneycontrol’s Rachita Prasad.
Contributors to sticky inflation could include higher prices of electricity and agricultural produce, which are expected to kick in later this year.
You can look at health policies with co-pay or sub-limits to keep a tight lid on premiums, but do note that such restrictions will also lead to inadequate coverage.
Even with slightly higher interest rates, there are still no viable long term investment options that are capable of beating inflation in a sustainable manner.
One can play selectively in IT stocks post correction as a rupee depreciation will benefit them; companies with lower exposure to Europe will be the preferred play as the Euro has depreciated, says Tiwari.
We are positive on the credit growth prospects in the medium term as we see a reasonable chance of a private sector capex cycle over the next two to three years.
"Investors need to stay with quality stocks, especially ones with stable cash flow and unleveraged balance sheet. The continuous correction in market will see a sell-off of speculative stocks that have weak fundamentals and the damage there will be irreparable."
Holland says the global markets may see a further fall of 5-10 percent, as the narrative has changed from 'buy on dips’ to ‘sell on rise’
For auto sector, order books are huge due to pent up demand and also due to supply constraints. Complete opening up of service sector and demand for personal mobility will keep the sector demand healthy.
"We say, jokingly, that our strategic plan is to wait for that telephone to ring," says Prem Watsa in interview
There will be some pressure on LIC’s market share in the near term it is unlikely to go below 50 percent as it has strong brand recall, says Gupta
Instead of always focussing on getting the timing right, a staggered or SIP approach can work really well for women.
In the near term, it is likely that global uncertainty would continue resulting in some degree of market volatility.
While considering the next point, the overall trend in crude oil remains upwards, but we do foresee prices witnessing an intermittent correction towards $70 a barrel during the year owing to a host of factors.
Given the recent actions of the RBI, inflation control is now a clear priority for the central bank, and that could impact liquidity and optimism in the domestic market, says the MD & CIO of ITI Long Short Equity Fund.
RBI governor Shaktikanta Das announced a 40-basis-points hike in the key lending rate and raised the cash reserve ratio by 50 basis-points in an unscheduled announcement on May 4.
Delhivery’s IPO response could potentially determine the outcome for startups such as Oyo, Snapdeal and Pharmeasy, who have filed draft papers with Sebi but have delayed their listing plans due to uncertainty in the market. Delhivery, too, had delayed its listing plans after it received Sebi’s nod in January.
The RBI doesn’t want to stay behind the curve and let the Indian rupee weaken as the US Federal Reserve raises rates, according to Patel.
Yuichi Murata, Director – Marketing & Sales, Honda Cars India Limited shares insights with Moneycontrol on the state of the car industry, how the present is a turning point for the Japanese giant and their plans around a volume-driving SUV that will be launched next year.
The business outlook for the IT sector continues to be reasonably positive over the next few years. All companies in the sector are looking to grow at double-digit rates for FY23.
Until investors get a sense of how the interest rate hike cycle and geopolitical uncertainties will impact the market and overall economic numbers, gold is unlikely to breach Rs 55,000/10 gm in the rest of 2022.