India's Sensex and Nifty indices rose on April 23, driven by realty stock gains, while the India VIX fell 19%. Experts note bullish trends despite US bond yields and Middle East tensions, with DII buying offsetting FPI selling.
Retail and high net worth traders have reached record levels in stock futures, driven by bullish momentum in mid and smallcap stocks. This shift occurs as headline indices trade in a narrow range, despite increased securities transaction tax and foreign investor pessimism.
Indian equity benchmarks crashed on Thursday with Sensex falling 1,196 points (1.54%) to 76,300 and Nifty50 dropping 367 points (1.52%) to 23,810. Crude oil surging above $120/barrel, record rupee low of 95.07/USD, and hawkish Fed stance wiped nearly Rs 9 lakh crore from market cap. India VIX jumped 5% as sell-off extended to smallcap and midcap stocks.
Rakesh Vyas, CIO of Quest Investment Managers, is using market volatility to selectively buy smallcap stocks after a 4-6 quarter correction, seeing them as beneficiaries of government consumption stimulus. He prefers smallcap banks over largecap for superior growth rates, with financials at 20-25% of portfolio. Consumer discretionary is his top bet at 25-30%, covering apparel, food delivery, hotels, and auto. Vyas remains underweight on IT services but favors product companies like Oracle Financial Services. Power remains a long-term 3-5 year conviction. He sees interest rates as likely bottomed, trim
