India will continue to present opportunities beyond Nifty for next few years: Rajat Rajgarhia
Rajat Rajgarhia, Director, Motilal Oswal Financial Services, says “one thing that we got taught last year was that while top-down, India is very good, the opportunities on the bottom-up are fantastic. If you pick the right sectors, right stocks, there are many compounders, there are many large ones in the making and that is where the effort is mainly focussed upon which is what last year's index was 20%, but the broader market were a lot larger. I do not see that pattern changing, neither this year, nor for the next few years to come.”
2023 was like a great year, it may not repeat itself. So, what should be the basic approach for 2024 — capital preservation or appreciation?
Rajat Rajgarhia: When you look at equities as an asset class, you always want appreciation. And if you look at the index as a year, for the year last year, we were up about 18-20%.
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Rajat Rajgarhia: 20% on the Nifty. But a very good part of those gains came in the last two months, especially post the state election results. We can divide this market 2024 into two buckets. First is events and we have big events. In the first half, there is the India election and in the second half, the US elections.
The second big event is at some point the Fed changes its track and then the third part is the size of the Indian market and the opportunity it is bringing, that is beyond a year. We are a $4 trillion market now growing at 10-12% per annum. We are in that stage of this economic phase where it
