India’s inflation rate lower than US; stock market outlook positive: Kunj Bansal of Investment-Illiteracy tells Anil Singhvi

Wall Street witnessed a brutal sell-off in yesterday's session after the US inflation data for August came higher than expectations. The global markets too roiled with investors fearing a sharper hawkish stand by the US Fed in its upcoming meeting slated for September 20-21 to tame the skyrocketing inflation. Reacting to global peers, the Indian stock markets started the day's session with a full gap down.

The bulls, however, roared as the domestic benchmark indices -- Nifty50 and Sensex displayed a stunning recovery from the lows.

Nifty50 comfortably claimed the psychological level of 18,000 and Sensex sat above the 60,000 mark.

According to the data released yesterday, the US inflation in August rose higher at 8.3% year on year against the expectation of 8.1%.

#MarketOutlook

भारत में महंगाई दर की स्थिति US से बेहतर...अगले कुछ महीनों में भारत में महंगाई दर घटने लगेगा: कुंज बंसल, CIO, https://t.co/Sk0HWJ8MMi

देखिए https://t.co/Sk0HWJ8MMi के CIO कुंज बंसल से अनिल सिंघवी की बातचीत @AnilSinghvi_ @kunj_bansal #KunjBansal pic.twitter.com/2BpRNU4ifZ

— Zee Business (@ZeeBusiness) September 14, 2022

The CPI index increased 0.1% month on month while the economists were expecting it to decline by 0.1% over the month due to a sharp correction in energy prices. 

In an exclusive conversation with Zee Business Managing Editor Anil Singhvi, Kunj Bansal, CIO, Investment-Illiteracy.com, said that the domestic markets outlook is strong as India’s inflation rate is lower than the US.

“The view is bullish. But the market may move in a range-bound manner a bit the view is 100% positive. After today's opening at low, the market has recovered well. The low opening benefitted as it pulled down commodities prices. Oil, metals and crude prices declined. Crude prices, agri commodity prices are continuously subduing. This is very positive,” he said.

"FIIs numbers have jumped from Rs 500-600 crore to Rs 1,000-2,000 crore, the numbers could turn negative but that is a supportive factor in the short term. The overall sentiment is positive," he said.

After today's correction, Kunj said, that the IT sector is good for making positions. He added that investors should keep an eye on the auto sector as the rally will continue.

Apart from this, the BFSI (Banking, Financial Services, and Insurance) mainly the banking sector will show a good move (both private and public sector banks).

He said that global commodity prices are correcting and as he said that investors should be cautious while investing in metals. "Prices are getting corrected after the rally seen in the past 1.5 years.

There is also a correction in oil prices as the global commodity prices are being corrected," he said.