What sectors should you bet on in 2024? Here's what 5 experts say (2024)

Rishi Kohli, CIO - Hedge Fund Strategies at InCred Alternative Investments, told Mint that Nifty may hit the 25,000 level by the end of 2024.

The market is witnessing tailwinds which can propel it to unprecedented levels. As Shreyash Devalkar, Head of Equity at Axis Mutual Fund, points out, "India has the right ingredients in place to set the momentum further over the medium to long term."

"The big picture is suggestive of an economy that will benefit from long-term factors such as improving infrastructure, manufacturing and the China plus one strategy ie curtailing imports and stepping up exports, formalisation of the economy and rising digitisation. India continues to be one of the few geographies globally that continues to record strong GDP growth with multiple positive drivers in place to sustain it as well. This factor should continue attracting investors to invest in India," said Devalkar.

Also Read: 5 key macro themes that will influence the market in 2024

While the outlook for the market for the year 2024 is positive, experts are positive about select sectors. We collated the views of five experts on the sectors they are bullish for 2024. Here's what they said:

Sunil Subramaniam, MD and CEO, Sundaram Mutual Fund

Consumption and banking and financial services should be the focus at the beginning and towards the end of the year – infra and capital goods depending on the progress in capacity utilisation and fresh capacity creation.

Also Read: Stock market in 2023: Here are 10 key milestones achieved by the Indian stock market this year

Ajit Banerjee, Chief Investment Officer, Shriram Life Insurance Company

BFSI, Infrastructure sectors, capital goods, cement, and realty sectors are expected to do well.

With rate cuts expected to start next year and focus on developing the next level of technology and AI gathering pace, one can think of taking exposure in the IT sector from a long-term perspective.

Also Read: 2023 in Review: Top 10 trends that caught investors' attention this year

Satish Menon, Executive Director, Geojit Financial Services

We are optimistic about the capital goods, infrastructure, cement, and renewables sectors, driven by the manufacturing story in India.

For the long term, we remain bullish on export-centric sectors such as pharma and chemicals, though realisations are forecasted to be subdued in the medium term.

Our positive stance also extends to power and real estate on a long-term basis, yet heightened valuations pose short to medium-term concerns, leading to a neutral rating.

We are negative on FMCG in the short-term and neutral on metals and auto due to high valuation and the likelihood of a slowdown in global and rural demand.

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Sandeep Raina, Executive Vice President- Research, Nuvama Professional Clients Group

In 2023, I expect infra (defence, railways, capital goods, roads) and banks to perform well. Even PSU and defence would participate in the markets.

The implementation of various schemes like PLI and government investments contributes to overall economic growth, fostering a favourable market environment.

Additionally, a new segment has come - the SME - and there are many stocks which are growing at 20 per cent with an ROCE (return on capital employed) of 20 per cent.

These stocks are available at reasonable prices, presenting a good opportunity in this segment.

I am positive about the markets and I think we should look at a valuation based on a $5 trillion and $7 trillion economy where we would see many new sectors and companies emerging and the PSU sector would play a big role in the same.

Also Read: Nifty 50 set to clock healthy double-digit gains in 2023; what are the key challenges for the market in 2024?

Gautam Duggad, Head of Research- Institutional Equities, Motilal Oswal Financial Services

Sectors delivering strong earnings would continue to remain attractive.

We remain overweight on financials, discretionary consumption, industrials, real estate, auto and healthcare.

Domestic cyclicals plus manufacturing and capex/industrial themes should continue to do well in 2024, in our view.

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Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.

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Published: 28 Dec 2023, 12:54 PM IST