Current Market Outlook

Foreign portfolio investors have pulled out more than $2 bn from Indian equities so far in January. In the preceding three months outflows from FPI's were close to $5 bn.

Domestic Institutional Investors continue to show their conviction in Indian equities and have bought more than Rs 7000 cr in January so far.

The systematic investment plan SIP for December 2021 hit its highest level ever at Rs 11305 cr crossing Rs 11000 cr mark for the second consecutive month.

 Markets are looking forward to the Union Budget next week on Tuesday. The market is also anxious about geopolitical tensions between Russia and Ukraine and its impact on crude oil prices.

 In the current Q3FY22 earnings season, one of the major concerns voiced by companies is the rising input costs as well as higher energy costs. However most companies remain optimistic that input costs have peaked in Q3.

At current levels of 16877 we believe Nifty trades at 23 times FY23(E) EPS. We believe Nifty can drift till 16280 levels which could be a good opportunity to accumulate quality stocks like Infosys TCS Reliance Industries ICICI Bank.

 Latin Manharlal Group