ETMarkets Smart Talk: Nifty@20K — IT and chemical sectors offer attractive risk-reward prospects, says Sunil Nyati

economictimes.indiatimes.com:

“The IT and chemical sectors offer attractive risk-reward prospects. A healthy correction in manufacturing, industrial, and PSU stocks presents a solid long-term entry point. In the financial and consumption sectors, selective buying is advisable,” says Sunil Nyati, Managing Director of Swastika Investmart Ltd.

In an interview with ETMarkets, Nyati said: “The broader market is demonstrating exceptional performance, primarily attributable to the optimistic outlook for the Indian economy and robust domestic liquidity” Edited excerpts:

We saw a steady rise in markets last week with the Nifty50 climbing to 20,000 levels. Do you think the upcoming US Fed meet could play a spoilsport?
The market is currently experiencing a robust bullish trend, with the upcoming Federal Open Market Committee (FOMC) meeting poised to be a pivotal global catalyst.

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On a global scale, markets are primed for a potential policy pause in September, followed by an anticipated 25 basis point rate hike in the subsequent policy meeting.

Nevertheless, in the event that the Federal Reserve opts to raise interest rates during this particular meeting, it could trigger profit-taking among investors.

It's important to recognize that such profit-taking, though it may cause short-term market fluctuations, can benefit the market's long-term health.

ETMarkets Smart Talk: Nifty@20K: Investors should avoid taking leverage positions, recommends Srikanth Subramanian

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