Defensive stocks come to the fore as investors go into risk-off mode

Asia's Tech News Daily

Defensive stocks, stock market crash, What to buy amid market fall, Stock ideas, IT stocks, Stocks to buy amid market crash

MUMBAI – The Indian stock market is undergoing its toughest spell since the once-in-a-decade crash in March 2020. The benchmark indices are currently sitting more than 8 per cent off their record highs, the most since last November.

The threat of a new Covid-19 variant, sluggish rural consumption demand, squeezing corporate margins and anticipation of tightening of global monetary policy conditions have played a part in creating this situation. Most importantly, foreign investors have continuously downsized their exposure to the best performing emerging market since October.

“We are expecting a very volatile market. I would recommend caution. We are not expecting a Santa Claus rally,” Ajay Bagga, independent market expert, told ETNow on Monday.

The extent of the sell-off has been cushioned by the return of domestic institutional investors, who have poured in more than $4 billion into the market since the beginning of November, the highest inflow since March 2020.

Foreign investors have net sold Indian equities worth more than Rs 59,000 crore since the beginning of October due to extremely rich valuations and better investment opportunities in other emerging markets like China.

Lofty valuations of the Indian market at 23 times one-year forward earnings have also met with slowdown in earnings upgrade following the September quarter earnings season. While the Q2 earnings largely met expectations due to the low base of the year-ago quarter, the tremendous margin pressure seen across sectors has failed to justify the rich valuations investors ascribed to stocks.

Money managers suggest that earnings growth will come into acute focus next year in the absence of the easy-money policy of central banks. Corporate India is likely to face difficulties in sustaining the stellar growth of the current financial year due to the high base effects, unless the domestic economy picks up steam meaningfully.

With the volatility gauge, India VIX, up more than 50 per cent from its lows in October, analysts are justifiably concerned that Indian equities may remain stuck in their current rut till fresh triggers for upside come up.

“We expect sector rotation in the market to continue and defensives like pharma, IT, and consumer to make a comeback till sentiments improve,” Motilal Oswal Financial Services said in a recent note.

Brokerage firm Emkay Global Financial Services, too, has made tactical changes to its large-cap model portfolio to add more defensive sector stocks. The brokerage firm has raised the weights of insurance, IT and telecom sector stocks, while reducing the same for non-bank lenders, metals, oil and gas and consumer staples. “We do not think that consumer staples provide robust defensiveness given rural softness; input cost inflation; and elevated valuations, supported partly by lower bond yields,” the brokerage firm added.

Internet Explorer Channel Network
Asia's Tech News Daily
News Related

OTHER NEWS

Five facts about disaster-hit Tonga

© STAFF Factfile on the Hunga Tonga-Hunga Ha’apai volcano, which erupted January 15, triggering tsunami waves around the Pacific and causing ‘significant damage’ to Tonga’s capital Nuku’alofa. The Pacific island ... Read more »

DOTr: Day 1 of 'no vax, no ride' was 'generally peaceful' thanks to compliant commuters

© Provided by Top Gear Philippines Day one of the ‘no vaccination, no ride’ policy in Metro Manila went pretty smoothly—at least according to the Department of Transportation’s (DOTr) initial ... Read more »

Starbucks ties up with Meituan to bolster presence in crucial China market

By Sophie Yu and Brenda Goh © Reuters/TINGSHU WANG A barista serves coffee at a Starbucks flagship store in Beijing BEIJING (Reuters) -Starbucks, which has seen sales slow in China ... Read more »

Inmates sue jail over ivermectin treatment for Covid as ‘medical experimentation'

Four inmates at an Arkansas jail have filed a lawsuit against the facility and its doctor after they said they were unknowingly prescribed ivermectin to treat Covid-19 as a form ... Read more »

Shabana Azmi's birthday wish for Javed Akhtar ft Zoya, Farhan Akhtar, Shibani Dandekar is ode to family love

© Provided by Pinkvilla Legendary lyricist and writer Javed Akhtar is celebrating his 77th birthday today and on his special day, wishes have been pouring in on social media for ... Read more »

Does POPIA prevent publication of matric results? Court to hear arguments

© Provided by CapeTalk The High Court in Pretoria will hear arguments against the Basic Education Department’s decision not to release 2021 matric results on media platforms. The department made ... Read more »

Mbalula confident CT's central line will be fully operational by end of July

© @MbalulaFikile/Twitter Transport Minister Fikile Mbalula during his inspection tour of Cape Town’s railway infrastructure on 17 January 2022. CAPE TOWN – Transport Minister Fikile Mbalula said that there was ... Read more »

Monday Musings: Lavasa, from dream city to ghost town... now what?

© Provided by Hindustan Times More than two decades ago, then-billionaire Ajit Gulabchand envisioned something different after Sharad Pawar floated the idea of developing Lavasa hill city while travelling in ... Read more »

US sanctions on Zimbabwe's elite ricochet across economy

© Jekesai NJIKIZANA There are plenty of Zimbabwean dollars, but greenbacks are rare Callisto Jokonya stands in the cavernous factory of Imperial Refrigeration and recalls the halcyon days. In the ... Read more »

There was not enough time to move Life Esidimeni patients, inquest told

© Kgothatso Mogale/EWN FILE: Life Esidimeni Waverley Care Centre Hospital in Boksburg. CAPE TOWN – There was not enough time to move mentally ill patients from Life Esidimeni facilities. That’s ... Read more »

Odisha: Former employee stays overnight inside bank to loot 1.6 kg gold worth Rs 1 crore, arrested

Odisha: Former employee stays overnight inside bank to loot 1.6 kg gold worth Rs 1 crore, arrested A former employee of a bank managed to sneak inside the premises and ... Read more »

‘Waiter! A bottle of 1975 Warhol please' – why every great artist has to do a wine label

© Provided by The Guardian Photograph: Sothebys/PA Here’s a good pub quiz question: what do David Shrigley, Tracey Emin and, er, Prince Charles have in common? The answer is they’ve ... Read more »

Krushna Abhishek calls uncle Govinda ‘Bade Miyan'; Hopes to solve ongoing feud

© Provided by Pinkvilla Actor Krushna Abhishek and Govinda’s family rift has not settled till now. Both families are not on talking terms for the last three years. However, Krushna ... Read more »

‘Loud' academic awarded more than £100,000 for unfair dismissal

© Provided by The Guardian Photograph: Christopher Thomond/The Guardian A senior academic who says she was sacked from her post in a university’s physics department because of her loud voice ... Read more »

Viral image of Kejriwal and Bhagwant Mann sitting in front of liquor stores is photoshopped

© Provided by The Print New Delhi: An image showing Delhi Chief Minister and Aam Aadmi Party (AAP) convener Arvind Kejriwal and the party’s Punjab unit chief, Bhagwant Mann, sitting ... Read more »

Almost 500K healthcare workers received SRAs as of Jan. 14 —DOH exec

© Unang Balita Deployment of nurses and healthcare workers abroad Almost half a million healthcare workers have received their special risk allowances (SRA) amid the pandemic, an official from the ... Read more »

Dramatic love story of Bollywood; Ranjish Hi Sahi

© Provided by The Statesman Dramatic love story of Bollywood; Ranjish Hi Sahi The series revolves around a fledgling maverick film director who gets drawn into an extra-marital affair with ... Read more »

India to provide assistance to the families of two Indians killed in UAE: Envoy

India has said that it will provide “whatever assistance” is possible to the families of the two Indian citizens killed in a suspected Houthi drone attack near the Abu Dhabi ... Read more »

Austria raises alarm about 'dramatic' femicide plague

© ANDREA KLAMAR-HUTKOVA Austria is gripped by a public debate about femicide after several particularly shocking and widely reported cases last year Painted in blood red on an improvised memorial ... Read more »

Beth Mooney out of Ashes with broken jaw; Huge setback to Australia

© Provided by The Statesman Beth Mooney out of Ashes with broken jaw; Huge setback to Australia On Tuesday, World No.1-ranked T20 batter Beth Mooney ruled on the eve of ... Read more »

Gericht prüft Antrag: Massenmörder Breivik will freikommen

Der Massenmörder Anders Behring Breivik, der nach den rechtsextremen Terroranschlägen in Oslo und auf der Insel Utøya in Norwegen in Haft sitzt, stellte einen Antrag auf vorzeitige Haftentlassung. Dieser wird ... Read more »

Peter Crouch makes 'mechanical' Rafa Benitez claim and Everton players admission

Peter Crouch has given an insider’s view on Rafa Benitez’s training methods and has admitted he can understand why his former manager was unsuccessful at Everton. The ex-England striker played ... Read more »

Former KKR player offered r₹r40 lakhs to fix matches - Report

Rajagopal Sathish, 40-year-old, lodged a police complaint in Bengaluru, claiming he was offered a sum of ₹40 lakh to fix matches. As per a report in The Indian Express, Satish ... Read more »

Spread a little kindness this New Year in Midlothian by volunteering

Midlothian Council and Midlothian Health and Social Care Partnership are joining forces with voluntary organisations to encourage local people to give a few hours of their time for the benefit ... Read more »

Man City challenge for Kevin De Bruyne spells trouble for Premier League

What do you get when you combine the best player in the Premier League with the best manager in the Premier League? Trouble for the rest of the Premier League. ... Read more »

Indonesia passes law to relocate capital to remote Borneo

© Reuters/WILLY KURNIAWAN Indonesia’s 76th Independence Day celebrations in Jakarta JAKARTA (Reuters) – Indonesia’s parliament has approved a bill to relocate the nation’s capital from Jakarta to Kalimantan on Borneo, ... Read more »

Anne Frank betrayal suspect named by researchers after new investigation

A team of historians, criminologists and data specialists have been using modern investigative techniques and believe a relatively unknown figure, Arnold van den Bergh, gave the Frank family up to the Nazis. Read more »

How Emirates 'air hostess' stood unfazed atop Burj Khalifa as A380 whizzed by in viral video

© Provided by Khaleej Times Emirates Airline’s bravest ‘air hostess’ gave the world , as she stood atop the Burj Khalifa in a viral video recently. And this time, she ... Read more »

Explosion and Fire In Abu Dhabi Brought Under Control

© UAEMoments Explosion and Fire In Abu Dhabi Brought Under Control According to the national news agency WAM, no “significant damages” have been reported following explosion and fire incidents in ... Read more »

How Republicans are driving the national agenda, even though Democrats hold unified control of government

Republican-controlled state legislatures across the country are approving a wave of new voting restrictions on virtually party-line votes that require only a simple majority to pass. The US Supreme Court ... Read more »

The Best FIFA Football Awards 2021: When, Where and How to watch the event in India

© Provided by Firstpost The Best FIFA Football Awards 2021: When, Where and How to watch the event in India After missing out on the Ballon d’Or, Robert Lewandowski may ... Read more »

India records 2,38,018 fresh Covid-19 cases, more than 20,000 less than yesterday

© Provided by Zee News New Delhi: For the second day in a row, India witnessed a decline in its daily Covid-19 count. On Tuesday (January 18), the country saw ... Read more »

Toddler drowns in hotel pool in Ras Al Khaimah

An Emirati toddler drowned in the swimming pool of a hotel in Ras Al Khaimah on Saturday. The details of the incident are not known as police are still investigating, ... Read more »

Dakwaan hakim ‘berbogel': Menteri Agama perlu selesai segera polemik perpecahan dalaman

© Provided by Free Malaysia Today Menteri Agama sebagai menteri bertanggungjawab kepada Jabatan Kehakiman Syariah Malaysia perlu menyelesaikan polemik itu dengan segera, menurut Zainul Rijal Abu Bakar. PETALING JAYA: Persatuan ... Read more »

Covid: Liquor shops in Andhra Pradesh to remain open till 10 pm

© Provided by DNA The Andhra Pradesh government on Monday (January 17) extended the business hours of liquor retail shops by one hour till 10 pm.  Special chief secretary to ... Read more »

How Akshita Mudgal managed to wear a 28-kg lehenga for wedding sequence in 'Iss Mod Se Jaate Hain'

© IANS Akshita Mudgal. Mumbai, Jan 17 (IANS) ‘Iss Mod Se Jaate Hain’ actress Akshita Mudgal speaks about the challenges she faced while shooting for the wedding track in the ... Read more »

Cryptocurrency Update: 6 Crypto Coins Gain Up To 821% in a Day; Bitcoin in Red

© Provided by News18 Cryptocurrency Update: 6 Crypto Coins Gain Up To 821% in a Day; Bitcoin in Red Cryptocurrency Update: The cryptocurrency market was back in red at the ... Read more »

RBSE Rajasthan Board Class 8 exam registration starts at rajeduboard.rajasthan.gov.in

RBSE Class 8 board exam registration process has started at rajeduboard.rajasthan.gov.in. The last date to register for RBSE Class 8 exams is January 31. In order to register themselves, students ... Read more »

French Open: No vaccine, no Roland Garros for Novak Djokovic, says French Sports ministry

Novak Djokovic’s French Open in doubt after sports minister U-turns on vaccine passes Novak Djokovic’s hopes of playing in the French Open suffered a blow following his expulsion from Australia ... Read more »

Exclusive | Delhi Gets Own QAT, 50 CRPF Commandos Handpicked from Kashmir, Naxal Areas to Deal With IEDs, 26/11-Style Attacks

© Provided by News18 Exclusive | Delhi Gets Own QAT, 50 CRPF Commandos Handpicked from Kashmir, Naxal Areas to Deal With IEDs, 26/11-Style Attacks Fifty handpicked commandos from the Central ... Read more »
On free-english-test.com you will find lots of free English exam practice materials to help you improve your English skills: grammar, listening, reading, writing, ielts, toeic