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Thanks to adequate liquidity in the equity market, both Sensex and Nifty reached all-time high in November. This was due to inflows from foreign portfolio investments (FPIs) following the US Fed’s announcement, which hinted moderation in rate hike.
Does this indicate the market will continue its bull run in December 2022? Let us find out from our experts:
Ashutosh Bhargava, Fund Manager and Head Equity Research, Nippon India Mutual Fund 
What is the market outlook? Indian market is moving up in tandem with global equities which are staging some rebound in the near term. Oil prices, Fed guidance on future monetary policy path and upcoming Union Budget are the key market triggers from hereon.
While valuations are not cheap in general, the broader market valuations have come down as against the large cap universe.
Which sectors appear bullish? We are overweight on financials, capital goods and consumer discretionary sectors.
Which funds/strategies make sense? - We recommend multicap/flexicap funds at this point. Also given elevated valuations, allocation in asset allocation funds like balance advantage funds and multi asset funds makes sense.
George Thomas, Fund Manager, Quantum MF
What is the market outlook? While domestic factors point to a potential revival in corporate earnings, equities are likely to be volatile in the near term owing
to global factors. The underperformance of other Emerging Markets (EM) compared to India could trigger EM investors to increase allocation to other markets leading to pressure on flows to India.
Talking about valuation across market capitalisation, diversified revenue base and relatively stable earnings profile make the large cap category relatively better in the current scenario.
Which sectors appear bullish? We are positive about the banking sector. Also consumer discretionary sector especially the two-wheeler is a compelling space. Further, post correction in IT stocks, current valuations offer a good entry point in this sector.
Which funds/strategies make sense? - For long term investors, opt for funds which have the flexibility to invest across market caps. Also, over the medium term, value as a style is likely to outperform.
Shibani Sircar Kurian, Senior EVP & Head- Equity Research, Kotak Mahindra MF 
What is the market outlook? Indian equity markets have been a huge outperformer in the last year and hence relative valuations are stretched even while the medium term outlook remains healthy.
Interest rate action by global central bankers especially the US Federal Reserve, trajectory of inflation in India and globally, any change in the geopolitical situation around the world and liquidity flow are the major triggers for the markets currently.
Which sectors appear bullish? We are currently bullish on banks, industrial, capital goods, home building and automobile sectors.
Which funds/strategies make sense? Given the current valuations, we are marginally overweight on large cap funds and marginally underweight on mid and small cap funds.
