Geopolitical tensions between Russia and Ukraine, surging oil prices to new highs daily remain immediate concerns, however, once the dust settles around these, the market is expected to shift its focus to key events such as inflation and central bank's view on the number of rate hikes, says Axis Securities in its report.  

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FED stance would be crucial trigger for short-term view

It believes the FED stance in the upcoming FOMC meeting would be the deciding factor for the market direction over the near term. The wider view is that central banks' first focus will be more on controlling the inflationary effects rather than the growth effects, it says.

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"We believe the present macroeconomic developments are leading to volatility in all major asset classes including equity, debt, currency and gold and the volatility is here to stay for some time before it concludes in a concrete direction," says Axis Securities.  

Nifty 2022 target remains intact

Maintaining December 2022 Nifty's target of 20,200, the brokerage said geopolitical development, macroeconomic factors such as inflation and the US FED decision in the interest rates and state election results are the key events in the near term that could drive the market performance in in the medium term.  

Quoting Warren Buffett: "It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price," Axis Securities identified 15 quality stocks from across large cap, mid cap and small categories.  

15 stocks to buy amid volatility

Top large cap stocks to buy during correction:  Tata Consultancy Services (TCS), Vedanta, Coal India, SAIL and SBI

Top mid cap stocks to buy during correction: Oil India, Canara Bank, Dalmia Bharat, Persistent Systems, Chola Investment & Finance

Small Cap stocks to buy during correction:  Finolex Industries, Birla Soft, Chambal Fertilizer, Redington India and Gujarat Narmada valley fertilizer.  

On Wednesday, benchmarks Nifty 50 recouped losses made in the afternoon trade to close above crucial support of 16,600, while the Sensex too settled lower by 800 points after declining by more than 1200 points in the afternoon trade.

Earlier, on February 24, the barometer indices declined nearly 5 per cent in a single trade as Russia launched an all-out military operation in Ukraine. The volatility index (VIX) shot up by 30% and closed at a level of 32, much higher than the longer-term average of 22, hinting at intensified panic among investors.

(Disclaimer: The views/suggestions/advice expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)