BSE Sensex hit a fresh 52-week high of 61,916.24 on Monday, on the back of buying in Infosys, Kotak Mahindra Bank, Tata Consultancy Services (TCS), and HCL Technologies among others. Both domestic equity market benchmarks BSE Sensex and NSE Nifty 50 have risen more than 4 per cent each so far this year. By December 2022 end, BSE Sensex is likely to hit 64000, NSE Nifty 50 index 19000, and Bank Nifty 43500, Sanjiv Bhasin, Director, IIFL Securities, said. In an interview with Surbhi Jain from FinancialExpress.com, Sanjiv Bhasin said foreign investors have started buying aggressively as NSE Nifty 50 is the best performing index in the global setup. Bhasin has also chalked out key themes to invest amid the current market scenario. Here are the edited excerpts.
1. What is your year-end view on BSE Sensex, Nifty 50, and Bank Nifty?
2. What are the key themes to invest amid the current market scenario?
Key themes to invest amid the current market scenario are PSU, banks, mortgage lenders, realty, speciality chemicals, and auto.
3. What are the key levels to track in Nifty 50 in Bank Nifty this month?
In NSE Nifty 50 index 17800 will act as support and once it crosses 18600, euphoria and left out feelings can see 19000 by year end. Bank Nifty will see support closer to 41000 while 43000 will act as resistance as the index is already trading at new highs before the Nifty 50 index.
4. What are your top stocks to buy and sell?
Stocks of Godrej Properties, DLF, Canfin Home, Ultratech Cement, ZEE, L&T & Anupam Rasayan can be looked at. Investors may avoid consumer stocks as cost pressure can see fall in margins.
5. Where do you look for opportunities in a volatile market? What are the top sectors to bet on?
Reality, mortgage lenders, speciality chemicals, for the simple reason that demand for self owned houses is at new highs, good builders are seeing huge sales & mortgage lenders in low ticket size are seeing huge margin expansion.Specialty chemicals are seeing growth as Europe & China are seeing pressure on energy costs & Covid lockdowns which is seeing huge expansion in business outlook for Indian companies.
6. What are the key drivers and triggers for Indian stock markets going ahead?
FOMO for the foreign investors who missed the woods for the trees selling India aggressively due to geopolitical risk & then rise in inflation & bonds in the US. Now they are retracting & buying aggressively as NSE Nifty 50 is the best performing index in the global background on the back of strong demographic premium in reopening & local retail investors putting their money where their mouth is.
7. How can investors protect their investment portfolio against rising inflation?
Investors can protect their investment portfolio against rising inflation by buying some high quality debt instruments, and high dividend yield companies.