Market at record high again! 4 of top experts list out sectors to pick and avoid

livemint.com:

Nifty and Sensex hit record highs in trade today (December 15) for the second straight session after the US Fed signaled that its interest rate-hiking policy is at an end and it will cut rates in 2024. The Sensex rose over 720 points to its new high of 71,234.63, whereas the broader Nifty50 index advanced 214.4 points to its record high of 21,397.10. The US Federal Reserve has opted to maintain unchanged interest rates and has additionally signaled the likelihood of three quarter-point cuts to the benchmark interest rate in the coming year.

This decision marks the conclusion of the interest rate hike cycle, with at least three anticipated rate cuts in 2024, which is viewed as a positive factor for the market outlook. In addition to the Federal Reserve's decision, several other factors contribute to the positive sentiment in the market. Foreign investor inflows continue to play a significant role, indicating confidence in the economic landscape.

Furthermore, the Reserve Bank of India (RBI) has raised its GDP forecast for the fiscal year 2024, adding to the positive outlook. The improved global macroeconomic trends also contribute to the overall positive sentiment in the market. Amid this rally, take a look at the sectors experts suggest and the ones they avoid.

Anticipated growth in government expenditure on infrastructure development is poised to create prospects for companies engaged in construction, engineering, and allied sectors. One should avoid commodity stocks as the volatility of commodity prices is anticipated to persist, driven by geopolitical tensions and disruptions in the supply chain. We see significant prospects in sectors that are aligned with the governments’ supporting capex and indigenisation policies.