Stock Market Forecast: Challenges Ahead in the Next Few Quarters
The stock market showed positive signs on Friday, rebounding from a significant drop the day before. The BSE Sensex gained over 700 points, and the Nifty50 climbed back up to 24,100. This recovery came after a steep decline, with traders making adjustments ahead of the monthly derivatives expiry.
Aside from Nifty Realty, all sectoral indices opened on a positive note. Nifty Media led the way with a 2.1% increase, followed by Nifty Pharma and Healthcare with gains of nearly 1.5%. Other sectors like Banking, Auto, Financials, IT, Consumer Durables, and Oil & Gas also saw increases of up to 0.5%. Meanwhile, Asian markets experienced declines, and the yen was on track for its strongest weekly performance in four months.
To shed light on the future of the stock market, Business Today caught up with Manish Gunwani, Head of Equities at Bandhan AMC Limited. Gunwani provided some insights into the near-term outlook for equity markets, stating that the environment for Indian equities has seen some deterioration recently. Earnings have been softer than expected for two consecutive quarters, leading to downgrades across sectors. Additionally, the victory of Mr. Donald Trump as the US President-elect has impacted expectations on the US rate cut cycle due to anticipated policy changes. While Gunwani remains optimistic about the long-term growth prospects in India, he also warned investors to prepare for higher volatility in the short term, given uncertainties surrounding global policies, geopolitical issues, and the current cyclical slowdown in India.
