Sheer economic challenges may bring inflation down, and, in turn, will force Central Banks to hold and reduce rates. Such an economic scenario does not favour equities and corporate earnings.
The pharma sector is experiencing a catch-up in valuations, but the American market, once lucrative, remains tough. The real estate sector is structurally bullish, particularly in the share prices of home manufacturing companies. Healthcare, technology, and select chemical companies are also attractive investment options. Return expectations may need to be moderated, as valuation plays a more important role due to rising interest rates. The real estate sector is expected to continue upward due to urbanization and remote work driving demand for larger homes and quality commercial space.
Motilal Oswal AMC fund manager, Santosh Kumar Singh, remains bullish on India's IT sector, despite the poor performance of tech companies in Q1. His view is that digital innovations are here to stay and would only increase the work of IT firms. Although concerns over ChatGPT disrupting the market have been raised, he argues that any digital innovation will benefit these companies over a 10-year period. Singh also sees value in India's insurance space and declared health insurers as the most attractive segment in the market.
"We recently did our five-year planning and we looked into the markets and market growth. India is number one in terms of growth. So therefore, we see a lot of momentum in the industrial, mobility, infrastructure and electrification space as India is very serious on driving renewables up. This is where we have a lot of business and local production," said Roland Busch, Siemens AG's CEO.
See NPS if I have to put the non-government sector, during the last financial year that 2022-23, we crossed the landmark of 10 lakhs which is the corporate sector.
​This year we need to secure the guidance number that we have talked about and of course, the intent will always be to try to exceed the number.
According to Tushar Bohra, a new cycle has started in industries such as defence, capital goods, manufacturing and railways, while a fresh cycle has begun in pharma and will start in IT soon. Valuations remain attractive in infrastructure for potential long-term investment opportunities. Bohra suggests that it is time to be selective and conduct thorough research into fintech and consumer tech stocks as some franchises are showing strength, whilst it is not necessarily the time to act across the board in these sectors.
Yes, since midcap has been outperforming, I am expecting midcap to continue its outperformance and move up. In that midcap segment, I have two stock picks.
If you see secured currently it is 50:50 secured and unsecured but going further considering the opportunity available, we will do secured 40%, unsecured 60%.