Top sectors to pick and avoid in 2025
Subscribe to enjoy similar stories. Mint spoke with wealth management experts to identify their top investment picks and strategies for 2025. Financial services stocks emerged as a favourite, driven by their reasonable valuations and the potential boost from monetary stimulus, which could revive credit growth and stabilize margins.
In contrast, metals are largely seen as a sector to steer clear of in the coming year, facing challenges such as sluggish global growth and persistent overcapacity in China. While valuations in the sector are lower, uncertainties continue to cloud the outlook. Devalkar expects sectors like consumer discretionary, healthcare, and capital goods to perform well in 2025.
“The consumer discretionary sector benefits from the premiumization theme as luxury spending has done well," he said while adding that companies in the capital goods space currently have strong order books. Meanwhile, both domestic and export markets in the pharmaceutical sector are growing steadily. Devalkar has avoided financial services, consumer staples, and oil and gas.
Lenders are facing challenges from slowing growth and pressure on net interest margins, driven by retail asset quality concerns and sluggish deposit growth. Consumer staples are seeing weak urban consumption despite signs of rural recovery. That said, oil, gas, and their derivatives, as global commodities, are expected to remain soft due to slower global growth.
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