2 sectors Nitin Raheja is bullish on in near term

economictimes.indiatimes.com:

«So now, markets will always surprise you by either doing this earlier or later but I think pretty much if you look at our earnings multiple number and it is really not something very difficult,» says Nitin Raheja, Julius Baer.Is20,000 on the cards?If you look at a long term history in terms of how markets have traded historically related to nominal GDP growth and the PE multiplier, if you took a one year forward view that yes, 20,000 is where you should be, especially after the kind of consolidation that we had seen over the last two years. So now, markets will always surprise you by either doing this earlier or later but I think pretty much if you look at our earnings multiple number and it is really not something very difficult.

If you really think about it, we are talking about 1050 EPS on the Nifty for FY25 and one year down the road, even if you sort of start discounting it at whatever 19.5 to 20 times, you are there, pretty much there. So yes, I would say that is pretty much where we should be maybe in a year from now.Which part of the market do you think will continue to lead the rally? Is it going to be let us say financials, is autos, which is looking good and finally, are the large caps likely to make a comeback, HDFC twins, Reliance?If you are talking of the market going to those levels, obviously, the large caps have to participate.

And when you look at it across the board, financials, obviously, is one very, very large component which will drive the market out there. We are at a stage where if you look at the financials, even at these levels, they are not tremendously stretched in terms of valuation, I think the valuations are pretty much attractive, given the growth and the multiple at which they trade.