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A seasonally dull quarter followed by prospects of higher interest rates kept the sector under pressure for a while now. However, incentives from governments like Maharashtra, as well as reports of a surge in housing sales in select cities, present a case of looking out for value buying in this beaten-down sector.

Going forward, FPI flows are expected to remain volatile in the coming months due to ongoing geo-political risk, elevated inflation, expectation of rising treasury yields, etc, Shrikant Chouhan, Head-Equity Research (Retail) at Kotak Securities, said.

The total crypto market cap is now near $900 billion. The market will likely be range bound till November 2, the day the US Fed announces another interest rate hike. Occasional rallies to the upside can occur, however. Macroeconomic conditions globally, including the possible collapse of a major bank (Credit Suisse or Deutsche Bank), can spook the markets in the short term.

“From the market earnings side, we believe this quarter would bear some brunt of the margin impact because of higher input costs but going forward, given that input cost pressures have abated, margins should bottom out and start improving in the second half of the year. Of course, the high frequency data in terms of various indicators seems to support this.”

Investors at first seemed more confident that the Fed would reverse course, but anxiety returned as they worried about how much damage would be inflicted before that happened. Where the markets go from here, and how to position an investment portfolio, depend on whether and how deftly the Fed changes its strategy.

Global markets will continue to be tracked, given that US Fed rate hike fears persist and have kept foreign institutional investors on a sell mode. In the week ended October 14, FIIs net sold Indian equities worth $854 million, compared with just $84 million worth of shares sold in the preceding week.

ACC, Can Fin Homes, Heidelberg Cement, Indowind Energy, Jindal Drilling & Industries, Bank of Maharashtra, Maharashtra Seamless, Oriental Hotels, Pioneer Distilleries, PVR, RPG Life Sciences, Tanfac Industries, Tata Coffee, Tata Metaliks, Thangamayil Jewellery, Elixir Capital, Spandana Sphoorty, Craftsman Automation and Choice International, among others.

"The way the Adani Group company prices have moved up, I think the least upward movement we have seen and in terms of valuation also Adani Port probably is best positioned for an investor to start buying into. It is a long-term story. They have a fantastic business going, they have acquired ports strategically on the eastern coast as well and that puts them in an enviable position for the future as far as Indian imports and exports are concerned.That is a company I am definitely willing to bet on."

“As we are into results season, we will see stock-specific performance due to the actual results. In the midcap space, we like GHCL, Tata Chemicals, Vishnu Chemicals & rice exporting companies like KRBL & LT foods. One can also look at Shree Renuka Sugar LTD, Pennar Industries Ltd, Jindal Drilling and Industrial Ltd, RK forge and La Opala RG Ltd.”

"IT companies have generously rewarded the shareholders in the last five years. In terms of PAT, 80% of what they have generated, have been paid back in terms of dividends and buybacks. If you are considering the next one year, I think IT stocks will definitely reward investors handsomely."