ETMarkets Smart Talk: The 3Cs and 4Fs theme will be in focus till Diwali 2024: Devang Mehta

economictimes.indiatimes.com:

“The 3Cs, namely, capex, credit growth, and consumption (more so discretionary, upper end and luxury) are themes which must find a way to get into the portfolio of investors,” says Devang Mehta, Director – Equity Advisory, Spark Capital Private Wealth Management.

In an interview with ETMarkets, Mehta said: “4Fs — Financialisation, Formalisation, Fiscal expenditure by the government & Farm income growth are the themes which will play out in an economic upturn and select sector and companies who are part of this theme will show robust growth and profitability,” Edited excerpts:

The festive season has begun, and we are seeing signs of stabalisation as volatility has reduced. How are you looking at markets?
India's festive season usually runs for several weeks until Diwali with millions of Indians binging on food, gifts, and home improvements.

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Consumer confidence reached a 4-year high in September, while demand for bank loans is near a 12-year high. Consumers are spending money on cars, smartphones, and TVs.

The continuing fiscal support directed toward rural areas ahead of polls could further boost consumption. Demand for residential real estate, especially for premium projects, is good in key metro cities.

A few micro markets (East and North Bangalore) are seeing unprecedented demand as 30-40% of the project inventory is getting sold in the soft launch phase itself.

Spreading Diwali cheer: Devang Mehta is bullish on these 3 sectors

Markets are sensing