Mumbai (Maharashtra) [India], November 4 (ANI): With global investors hyper-focused on the US election outcome, shifting macroeconomic tailwinds and prospective tax reforms are converging to bolster Indian equities. 

Shrikant Chouhan, Head of Equity Research at Kotak Neo, spoke exclusively with ANI in Mumbai on Wednesday to break down the key triggers shaping Dalal Street's next move.

Chouhan highlighted that domestic equities are currently drawing strength from a welcome pullback in crude oil prices, easing US bond yields, and a cooling off in AI-dominated global sectors.  

Discussing the ongoing US presidential count, he noted that political shifts could sway Indian market sentiment. 

'If Democrats gain control of Congress, it could be mildly positive for Indian markets as it may put some checks on aggressive tariffs and trade policies,' Chouhan stated.  

He added that a combination of a Democratic win, softer crude, and lower yields would serve as a robust positive catalyst. Conversely, a Republican win could reintroduce volatility and trigger profit-taking due to potential upward pressure on crude oil.  

On the domestic front, Chouhan welcomed recent discussions regarding potential reviews of Long Term Capital Gains (LTCG) and Securities Transaction Tax (STT) levies. Finance Minister Nirmala Sitharaman recently addressed investor concerns and Foreign Institutional Investor (FII) outflows during her Mumbai visit, while market regulator SEBI has also initiated dialogues. 

'This particular news is something positive for equity markets,' Chouhan remarked, noting that it acts as a major morale booster during turbulent times.  

Addressing concerns over potential government revenue losses, he emphasised that curbing capital outflows is an immediate priority. 

'We cannot bear the consistent pressure of dollar outflow, and I think that is why it is more important that to work upon something which we can fix on an immediate basis,' he explained.

Looking at sectoral opportunities, Chouhan expressed strong conviction in private banks. 'They are trading nearly 20-25 percent lower from their fair values, which we can say is an excellent opportunity for retail investors to invest in with a medium-term view,' he advised.  

He also recommended tracking capital market plays and pharmaceutical counters. 'We like capital market stocks; there we also feel stocks that are directly related to the capital markets, Grow, Angel, and a few exchanges. I think there we can see some more upside from current levels,' he noted.  

In pharma, he highlighted the Contract Development and Manufacturing Organization (CDMO) space, pointing to Laurus Labs, Divis Laboratories, and SciLife.  

With Nifty holding firm above the crucial 22,000 mark and robust Q2 corporate earnings limiting downside risks, Chouhan remains optimistic that steady crude prices below the USD 100-103 threshold will sustain the market's upward trajectory. (ANI)