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real estate (interest rates likely to come off next year), and IT (global recovery next year). The growth in these spaces is just taking off and valuations are still reasonable. Manufacturing should do well driven by massive capex driven by govt spending (rail, defense etc).
Also, private capex is likely to accelerate over FY23 driven by higher capacity utilisations leading to fresh capex as well as PLI opportunities which require fresh capex. IT – The IT sector has not participated in the last 18 months as valuations were very high as well as growth rates have been slowing as compared to what we saw immediately post covid era. We however believe that the growth rates are likely to bottom out in Q1 and accelerate once again post Q3 Onwards.
Interest rates are also likely to come off next year which should benefit this sector going forward. Startups- Most of the startups when they came for IPO were loss-making with no visibility of profitability in sight. However, this has changed over the last 12 months.
Most start-up companies are now talking about focusing on profitable growth. Again with interest rates coming off next year, this space should benefit as well. Disclaimer: The views and recommendations made above are those of individual analysts, and not of Mint.
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