This fund manager remains positive on 4 major sectors, entering into 2024
While many sectors and themes have done well in 2023, HDFC Asset Management is positive on four major sectors, entering into 2024.
“At the broader level, we are positive on sectors with good prospects of earnings growth and where valuations are reasonable,” said Rahul Baijal, senior fund manager – equities at one of India’s leading asset management companies.
In his view, some of the large banks seem well placed given their strong balance sheets, healthy credit growth, good asset quality and reasonable valuations. Telecom and healthcare are the other two sectors that Baijal thinks look good from a medium to long term perspective. Edited excerpts.
How does 2024 look up for the Indian equity market? What are the key factors that will drive inflows? Indian equities have done well in 2023 and are likely to end the year on a positive note, with all three market cap segments delivering positive returns.
In my view, as we enter 2024, global macro factors may dominate local macro in the first half of the year. The nature of the slowdown in the US and the movement of the US 10-year yield is likely to continue to cause volatility, as has been the case in the recent months. Locally, the economy is in a good shape with healthy macroeconomic fundamentals.
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The world is having a shortage of good quality growth stories in emerging markets and India stands out on a relative basis and absolute basis.
Elections in India will be a big macro event that will be watched closely,
