Stock market: The stock market is not taking the name of running for a long time. The recent decline has increased the heartbeat of investors. Everyone is thinking this – is this decline just a small shock or the beginning of a big recession? How will the stock market move in the coming two months? Will investors get relief, or will this phase of decline continue? Let’s know in this report
Kotak Institutional Equities have taken out a report regarding the stock market. Brokerage said that the stock market has recently seen a very sharp decline, but despite this, the market has remained alert. Kotak said that the market is renewing the boom in the last few years and due to this, the move of the stock market may remain directionless for the next few months.
Kotak said that if you see the return of the last one year, it is still almost flat. This means that despite this decline, there is no attractive opportunity to shop in the stock market. Kotak said that it is expected to continue this trend even further.
Kotak said that there is pressure in the stock market for about 4 reasons at this time. The first is elevated valuation- Many sectors and stocks are still trading on expensive valuation. Second is weak earnings growth- Ends of Indian companies have remained weak than the last few quarters and there is a possibility of their weakness even further. The third is high interest rates- not only India but also internationally, interest rates remain high, due to which the sentiment of investors has been affected. And the fourth is the declining heartfelt in emerging markets like India, due to which they are continuously selling.
Brokerage said that most sectors and stocks are still trading on high valuation. Especially small and medium shares may face the most pain.
Kotak said that he expects the performance of different sectors in the stock market during the next 2 months. Brokerage said that large cap stocks may remain in limited scope during this period. At the same time, there may be a huge decline in many midcap and smallcap stocks.
Kotak said that in view of the recent decline in the stock market, now market analysts can soon renew the valuation level and earning estimates of the companies.
Brokerage said that in the last 18-24 months, there was a lot of enthusiasm in the market, causing the prices of shares to go far above their real value. To justify their valuations, new valuable methods were being adopted and arranging was being exaggerated. But now when correction has come, it may be time to correct real valuations.
Stock market will soon reduce pressure: MK Global
However, the brokerage firm MK Global is completely different from this. Brokerage firm MK Global says that it seems that the worst phase of earnings growth has passed. This means that pressure on the market will decrease in the coming days. Brokerage said that the current valuation of the Nifty is also confirmed.
Brokerage said that the Nifty has lost 13 per cent from its all-time high of September last year. In this, trading is being done on 19 times the one -year forward earnings. This means that the valuation of the Nifty has come down by 5 percent at an average of 10 years. This level can be called attractive.
Also read- Market buzzing after falling for 9 consecutive days, the wall of 23810 will break, then the bullet will become nifty
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