Market in 2024: 3 important triggers that could drive equities this year and what investors should do
outlook 2024 note. These positive trends in the equity market indicate a favorable economic environment and investor sentiment, likely driven by factors such as strong corporate earnings, economic recovery, and supportive government policies. As always, it's essential for investors to stay vigilant and monitor market dynamics for informed decision-making in the ever-evolving financial landscape.
Going ahead, investors are stepping into 2024 with optimism, buoyed by prospects of potential rate cuts, robust economic expansion, and anticipated political stability post the Lok Sabha elections. These factors collectively bode well for the equity market outlook. Demand pickup in mass segment: Demand in the mass market and rural segments has remained muted since the pandemic due to inflationary pressures.
Moderation in inflation could support a recovery in the mass market segment, further strengthening the ongoing economic upcycle, said the brokerage. While the earnings growth in recent quarters was driven by margin expansion, volume growth driven by broad-based demand could support earnings growth in 2024, it noted, further adding that volume recovery in rural-focused two-wheeler sales indicates green shoots in rural consumption. Private capex revival: According to Quantum, most of the recent capex was driven by the government sector.
As per the RBI survey, capacity utilisation in the manufacturing sector is near a healthy level of 74-75 percent. A buoyant demand environment along with a pickup in utilisation could strengthen the private capex trajectory, stated the brokerage, pointing out that private capex is showing early signs of revival. Foreign flows: While DII flows have been robust for the past few years, rising global
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