At the other end of the spectrum are Nifty PSU Bank, Nifty Bank, Nifty FMCG and Nifty Realty indices that have been relative laggards, and moved up 1 per cent to 45 per cent during this period, data show.
"This polarisation is also evident from the fact that only 15 per cent of this universe of Covid-19-impacted stocks
are above pre-Covid-19 levels versus a much larger around 70 per cent of the Covid-19 resilient names which have surpassed their respective pre-Covid-19 stock prices," Jain of CLSA
As an investment strategy, those at Credit Suisse
Wealth Management, too, share a similar view and suggest investors increase exposure to private banks from a 12 – 18 month horizon.
"The economic growth momentum has picked up pace and the upcoming results season will provide more color on the strength of the broad-based rally in the market," wrote Jitendra Gohil, head of India equity research at Credit Suisse
Wealth Management in an October 15 co-authored report with Premal Kamdar.
Even though the economic activity has picked up pace over the past few months, analysts at Nomura
caution against a sharp rise in Covid-19 cases during the festive season. That apart, they believe the underlying weakness in the labour market is worrying as it reflects continued pressure on household incomes, which can be a medium-term headwind for consumer demand.
In this backdrop, though analysts do remain bullish on the road ahead for the markets, they do remain mindful of the event risks that lie ahead and the current valuation at which the Indian markets
"While the valuation is very expensive – 12-month forward price/earnings (P/E) of 21.2 at all-time high levels – hopes of further fiscal stimulus in the US (as high has 10 per cent of GDP), development on vaccine and revival in economic activities in India may keep investor’s interest high," Credit Suisse
At around 18x P/E on normalised FY22 earnings per share (EPS), those at CLSA believe that absolute upside for the index may be capped as it is less than 10 per cent away from its 15-year high of 19.6x seen in January 2008.
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