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Dipan Mehta says: :Oil marketing companies can have a further trading rally even from these levels, but these are not great long-term investment stocks as we have seen. Their performance is extremely patchy and if oil prices start to move up, then these companies profitability will certainly come under stress. So, while they are great trading opportunities, I am not sure I can look at buying HP, BP, Indian Oil on a three-five-year investment horizon."

Dipan Mehta discusses the factors leading to better performance in the pharma sector, including the confluence of factors and the cooling off of raw material prices. He suggests that investors should consider overweighting the pharma and healthcare sectors for safety. Regarding the QSR space, Jubilant FoodWorks' numbers have been unenthusiastic, but Mehta believes the slow growth is transient and recommends remaining invested. As for the interim budget, Mehta highlights the focus on infrastructure and suggests considering engineering construction companies for trading opportunities and beyond ...

Dipan Mehta says capital goods and infrastructure sectors are expected to do well in the coming years, especially if the BJP retains the majority in the General elections. There has been an increase in SME IPOs compared to mainboard ones, but caution is advised due to the frothiness and lack of floating stock in SMEs. Railway stocks have performed well due to increased budgetary allocation. Small and midcap stocks have good quality businesses, but valuations are very rich.

Dipan Mehta, Director, Elixir Equities, cautions investors to be cautious in 2024 and maintain liquidity. He observes softening demand across sectors and the impact of the base effect on corporate earnings. The bull markets in 2024 will require skill and risk management, unlike the luck-driven gains of 2023. Investors will be tested on their research skills and conviction, as the year will be stock specific and tricky.

Dipan Mehta expects a deep correction in the stock market, possibly as much as 10-12% on the Nifty and the Sensex. Corporate results have been disappointing, with growth rates of 10-12% but not enough to encourage buying at current valuations. Profit margins have expanded due to commodity prices, but this trend may level off. The next six months could see very disappointing earnings seasons. Banks are also facing challenges, with concerns about NPAs and slower growth in advances due to cautious lending and a war for deposits.