Saturday, September 23, 2023

Avoid sectors with global exposure such as IT, oil, gas: ICICI Securities

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ICICI Securities Ltd on Wednesday, Nifty said a year ahead target is 19,425 with a sector bias towards banks, capital goods/infrastructure and autos.



It has suggested investors avoid sectors such as information technology (IT), oil and gas and metals as they have more global exposure.

The company has recommended shares of Axis Bank, City Union Bank, Apollo Tires, Eicher Motors, Coforge, Lemon Tree Hotels, Healthcare Global Enterprises, Laurus Labs, Container Corp and Havells India as Muhurat 2022 shares.

In a report, ICICI Securities said the year 2022 was marked by volatility due to a wide variety of global new flows ranging from geopolitical concerns, higher inflation (primarily food and energy) and aggressive central bank actions.

This has led to a decline in global equities, mainly in the US and Europe.

However, India has relatively outperformed global competitors in terms of all economic parameters (capex spending, discretionary consumption, strong rebound in banking activity, etc.), the report said.

The same is reflected in the Indian stock markets.

“If we continue, we believe Corporate India is likely to deliver earnings growth of more than 15 percent over the next two years, given the current economic environment and an abundance of investment opportunities in Indian markets,” said ICICI Securities.

However, sticky global inflation will keep central banks aggressive and India will be no exception.

Similar implications for global liquidity flows could cause volatility in Indian markets in the medium term. However, if such a scenario occurs, it presents a good opportunity to take exposure to Indian equities, the report said.

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