Real Estate (Solid recovery after slumber): As per the brokerage, a revival in the property cycle is likely to be sustained driven by a time correction in prices, better affordability, reasonable interest rates and the need to have bigger houses. This will have a positive impact on many industries (such as steel, cement, building materials, and other related sectors) and generate employment across income strata, added the brokerage. Infrastructure (Infra spending remains a key booster): Budgetary allocation for capex has been going up substantially for the last couple of years and supporting various industries, noted the brokerage.
The government looked at innovative ways like the Nation Asset Monetisation Plan to support its ambitious target ₹111 lakh-crore investment under the National Infrastructure Pipeline (NIP), it further highlighted. Corporate Capex (Set for an expansion spree): Many large corporates have set out a capacity expansion (including core sectors). Banks are in better health now and capitalised to support credit growth in the economy.
Private sector deleveraging and improved asset quality of banks to support expansion plans. The intensity of corporate capex doubled in the range of ₹24-26 lakh crore vis-à-vis five years back, stated the brokerage. Given the current monthly average SIP flows to date in FY24, it can potentially rise to ₹1.8-2 lakh crore annually and the figure will only grow.
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