Market Outlook: According to Anil Rego of Right Horizon, many important factors including RBI policy, cuts cuts, central budget and results of companies can bring major changes in Indian markets in the coming months. He further stated that the RBI’s stance could cause softening, further deductions, efforts to increase cash in the system as well as sensitive sectors towards interest. Sector rotation can be seen due to factor such as rates cut from US Fed, crude oil price trends, global risk and FPI investment.
He also believes that India’s defense sector will get a boom for the next several years. The strong structural factors of this sector are supported. Anil Rego, founder and fund manager of Right Horizon, further said that the government policies focused on indigening, increasing defense budget and increasing export order are providing long -term benefits to this sector. However, in view of the possibility of expensive valuation and re-movement, some PSU defense shares cannot be ruled out in short terms. But the defense shares will perform very well in the long term. In these sectors, focus on selected quality shares whose balance sheet is strong, whose ability to fulfill the order and order book is better.
Talking on other PSU shares, Anil said that in view of the strong boom in the last one year, there is a need to invest in PSU shares carefully. Invest the quality of the quality PSU shares on the right price and keep investing in a long view. Defense, capital goods and financial sector shares still look good. Focus on such shares of this sector which are expected to increase the earnings and who are likely to benefit from government reforms. Invest in a disciplined manner with bottom-up approach in shares with good fundamentals.
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