IGI Logo

Quote On Sensex hits an all-time High By Mr. Amar Ambani, Group President and Head- Institutional Equities, YES SECURITIES

“After almost an 8-month consolidation, the Sensex has hit an all-time high. World inflation has fallen fast and importantly, key inputs like Oil, natural gas, lumber, palm oil, steel, coal have come off significantly. The interesting part is that these price drops look sustainable, because they seem to have come on the back of reinstatement of disrupted supply, rather than demand destruction. The supply chain index that we track is back to pre-pandemic level. Global Central bankers are close to the peak of their rate hike cycle. In fact 20 out of 23 countries tracked on Bloomberg may begin to see rate cuts in 2024.

India stands out in a slowing world and a weakened China. The government’s thrust of infrastructure, including digital public infra, and pick up in private consumption through rise in credit offtake, will help the India story chug along.

Sensex earnings kicker will come from expansion in margins, as companies keep some part of the gain from falling input costs, and strong results from Banks and NBFCs. Valuations aren’t demanding at 15.5x FY25 EPS, so if monsoons don’t play spoiler, 2023 will be a strong year for Indian equities. Lot of money is on the sidelines and the carry trade is playing out from Japan. FPI money should keep flowing into India, with expected stable yields and healthy INR outlook.”

Above views are of the author and not of the website kindly read disclaimer