Largecaps, top IT stocks likely to do well in 2024: Abhijit Bhave of Equirus Wealth

livemint.com:

interim Budget 2024 is unlikely to be about any major announcement but the government could showcase what it has achieved in the past 10 years, believes Abhijit Bhave, CEO & MD of Equirus Wealth in a telephonic interview with Livemint. He also shares his views on the sectors and fund categories that could do well in the Calendar Year 2024. About the broader market index, he asserts that there are grim chances of the repeat of the ongoing bull run of 2023.

Mr Bhave also shares the reasons as to why this is the right time to invest in long term debt securities at this time, his views on crypto as an asset class, and more. The interim Budget 2024 would be a non-event. The FM could showcase what the government has done in the past 10 years but there would be no major announcements, as they would be kept for the main budget.

But there could be some minor changes in personal taxation for the middle class, not for others. The CY 2024 would be about large caps. As far as sectors are concerned, large cap banks would do well and the large IT firms would do well.

In the IT sector, it is the top IT firms which are likely to do well. This is because of 2-3 reasons. Interest rates are cooling off, corporate spending would go well and their order books would move up.

Our view is against the standard market view. The chances are that the market would give 12 percent return. But we don't just buy the index, we buy sectors and stocks in order to beat the index.

But whether the market gives 18-20 percent return, the chances are not high. This is a strong decadal growth story where the economy would do well leading to higher consumption. This means companies would do well, earnings would grow.