Looks like the NSE Nifty 50 has been relatively stable in December so far. Experts recommend keeping an eye on the election results, sectors that tend to get a seasonal boost, and waiting for a correction in recent outperformers. Analysts advise investors to watch out for election outcomes and sectors that get seasonal boosts in December. Areas of interest include auto, real estate, infrastructure, hotels, jewellery, and recent outperformers.
FII shortfall to be filled by domestic investors: Foreign funds may not affect the market much in December, as most of the rally has been driven by DIIs and retail investors. The outcomes of the state elections will help build the market outlook, with the general elections a few months down the line. If the result favours the ruling central government, there will likely be more up-moves, while some short corrections can’t be ruled out if it goes the other way, according to Shrikant Chouhan of Kotak Securities.
Sectors to watch: Siddhartha Khemka of Motilal Oswal is bullish on jewellery, retail, and hospitality sectors, which are expected to benefit from the strong wedding season and holiday season. He is also optimistic about real estate due to strong demand.
Khemka also recommends capital goods and infrastructure sectors due to their healthy order wins and preference by FIIs in the last 12 months.
