ETMarkets Smart Talk: Banks, Capital goods among top 5 sectors to bet on in 2024: Ajit Banerjee

economictimes.indiatimes.com:

“Large private sector banks are available at attractive valuation backed by the very healthy and clean balance sheet, witnessing robust credit growth, Ajit Banerjee, Chief Investment Officer of Shriram Life Insurance Company.

In an interview with ETMarkets, Banerjee said: “This lower premium combined with stronger earnings growth expectations for the Indian equity markets vs. Emerging markets over the next two years places India in a good position comparatively in terms of valuations and outlook,” Edited excerpts:

Samvat 2080 started on a positive note as the market picked up momentum. Where are markets headed?
The world economy is undergoing a mix of tailwinds and headwinds. On one side, we are witnessing an easing of inflation in the US and a global decline in commodity prices that have positively impacted the economy which reduced probable global recession fears and potentially influenced the US Federal Reserve's future rate hike trajectory.

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Back in India, CPI headline inflation eased to a 4-month low of 4.87% YoY in October 2023 from 5.02% in September. This positive shift offers the Indian central bank more space to maneuver in balancing growth and inflation.

On the flip side, there are some risks still looming as well. Potential further rate hikes by the US Federal Reserve are not ruled out entirely going by Powells statement, volatility in commodity prices, geopolitical tensions such as the conflict in Israel, and persistent supply chain disruptions could reignite