Stock Market: India-Pakistan tension.. Know where to invest best at this time
Stock Market: India-Pakistan tension.. Know where to invest best at this time
India-Pakistan tensions and stock markets are in turmoil right now. Know where it is best to invest at this time. If you are planning to invest money in the stock market at this time, then this is a great opportunity for you. After the decline of the last few months, the market is now showing some recovery and with this some mutual funds have also given excellent returns.
Then there is a cloud of war between India and Pakistan
What investors should do : stock market
If you are a new investor or do not have in-depth knowledge of a particular field, it would be better to start investing with diversified equity funds or index funds. Only investments made with the right information and patience during the ups and downs of the market can protect and grow your money.
Sectoral/Related Funding:- stock market
Sectoral/related funds, particularly banking, consumption and ESG, have performed well. These funds have registered an average growth of 5.07 per cent, 4 per cent and 2.41 per cent in the last one month. In addition Funds in the midcap and large and midcap categories have also given better returns of more than 2 per cent.
Sectoral/related funding The biggest risk of this fund is the ‘concentration risk’. This means that all your money is invested on some selected fields or themes. If their performance deteriorates, your investment may also be badly affected. So this fund is not for every investor. This is more suitable for people who have a good understanding of the market, the ability to take risks and can invest for a longer period of time i.e. for at least five years or more.
These funds are at the forefront of banking sectors:-stock market
If we talk about the top funds, Sundaram Financial Services Opportunities Fund was at the forefront of the banking sector, giving a return of 6.48 per cent. This was followed by HDFC Banking and Financial Services Fund at 6.29 per cent and Tata Banking and Financial Services Fund at 6.16 per cent. Among the consumption funds, Nippon India Consumption Fund has earned 6.25 per cent, Tata India Consumption Fund 5.22 per cent and Sundaram Consumption Fund 5.16 per cent.
Among ESG thematic funds, Quant ESG Equity Fund has given a return of 3.87 percent, ICICI Prudential ESG Exclusionary Strategy Fund has given 2.85 percent and Whiteoc Capital ESG Best-in-Class Strategy Fund has given a return of 2.71 percent. At the same time, in the midcap category, Torus Mid Cap Fund gave a return of 2.82 per cent and in the large and midcap category, Invesco India Large and Mid Cap Fund gave a return of 3.56 per cent.
Sectoral and thematic funding also carries risks:-stock market
It is very important to understand one thing before investing. Sectoral and thematic funds look very attractive, but the risk is also very high. Sectoral funds invest in only one sector, such as banking or IT, so if that sector performs well, there is a good profit, but if there is a decrease then the loss is equally large. Thematic funds are a bit broad and are based on a specific theme, such as ESG, which can include companies from different sectors. PL Capital had earlier set a target of 27,041 for the Nifty, which has now been increased. This growth is good business locally, This could be due to good growth in sectors and continued support from the policy. PL Capital has set a target of Rs 10,000 crore for the next 12 months. From Rs. 25,689 to Rs. 25,521 has been done. The brokerage company said, “The target cut is due to global and domestic macroeconomic challenges. Apart from this, the US-China tariff war has also had an impact.
After the protests against the implementation of the tariff, there was an atmosphere of boom in the stock market:-stock market
The brokerage company said that geopolitical tensions and tariff wars between the US and China are a matter of concern for the global economy. In such a situation, the manufacturing sector may struggle. If we look at the point of decline, in the long run, the Nifty can remain at the level of 24,831 at the level of decline.
The brokerage company said the Indian markets fell 3.8 per cent YTD as macroeconomic uncertainty continues to weigh on sentiment. FiI’s sell-off, lower-than-expected domestic demand and declining revenues, add to the frustration. PL Capital reported that, The Nifty EPS estimates for FY26 and FY27 have been cut by 6.2 per cent and 5.6 per cent, respectively, since October 2024. While inflation has come down. At the same time, RBI has reduced the repo rate by 50 basis points.
In response to these weak indicators:-stock market
RBI has cut its FY26 GDP growth forecast by 20 basis points, strengthening the cautious outlook for the coming year. Analysts at PL Capital expect total sales growth to be 5 per cent across all sectors, but a marginal 0.5 per cent decline in EBITDA and a 2.2 per cent reduction in profit before tax (PBT) reflect margin pressure and weak profitability.
Profits of telecom, AMC, travel, EMS, metals, hospitals, pharma and durables are expected to increase, while PBT of banks, construction materials, logistics and oil and gas is likely to come down. Meanwhile, it, consumer, cement and capital goods sectors are expected to see only modest growth.
Jump in largecap stocks:-stock market
ABB India, Bharti Airtel, Bharat Electronics, Britannia Industries, Cipla, ICICI Bank, InterGlobe Aviation, ITC, Kotak Mahindra Bank, Mahindra & Mahindra, Maruti Suzuki, Titan Company can grow.
Small and midcap stocks:-stock market
Stocks such as Aster DM Healthcare, Astral Limited, Chalet Hotels, Crompton Greaves Consumer Electricals, Aeris Lifescience, Ingersol-RAND (India), IRCTC, Keynes Technology India, KEI Industries, Max Healthcare Institute, Triveni Turbine can also give good returns.
Note: Here are the targets of the shares of various companies mentioned above by the brokerage companies themselves. Usstockwatch.COM don’t take responsibility for this. Before making any kind of financial investment in the stock market, take the help of your financial advisor.