ETMarkets Smart Talk- Plan to invest Rs 10 lakh? Here are 7 stocks for long term wealth creation: Vikram K

“We have been advising investors to get into these stocks and these sectors. In Reliance Industries, there is significant upside potential for a long-term investor through value unlocking of multiple businesses. Also, some of the infrastructure and construction sector stocks – NCC, NBHC or a power stock like NTPC should continue to reward shareholders in the long term.”

India is considered a good investment due to its growth opportunities, particularly in the capital goods and infrastructure sectors. While IT companies and PSU stocks may suffer from cooling relationships between India and the US, the current government's focus on infrastructure spending is bolstering stock markets. Pashupati Advani, founder of Global Foray, suggests investing in midcap cement and infrastructure stocks, as well as new-age businesses, such as Paytm and Zomato.

“From a margin perspective, things are getting better and revenue growth should start accelerating from the third quarter onwards. Therefore, we believe that in a lot of the small cap and midcap names, there is an opportunity to do bottom-up stock picking and we remain quite constructive on selective names.”

Global investments in space startups rose for the first time in more a than year in the third quarter as investors bet on companies with government contracts that are considered more immune to a turbulent economy, a report showed on Monday.

After a minor corrective phase, while the mid and small caps are once again in party mode, large caps have been lagging in a relative manner. But investing in not about a quarter or week, it is much more than them. If one looks at the long term, large caps are able to outperform and create wealth in a more sustainable manner. So probably a short phase of underperformance due to the fact that everyone is chasing short term performance due to recency bias might be an opportunity to look at some stocks with a long term perspective.

Kaustubh Pawaskar, DVP, Fundamental Research at BNP Paribas, predicts that Q2 will be a weak quarter for consumer goods companies, with no significant improvement in demand. However, higher margins may contribute to decent bottom line growth. Pawaskar expects a recovery in volumes from Q3, driven by stable urban consumption and increased government spending in rural markets. The QSR space has been impacted by inflationary pressures, but burgers and sandwiches will perform well from Q3.

The broad picture indicates that consumption is recovering but will continue to play second fiddle to capex in 2024-25 too.

Sales of daily groceries and essentials increased 8.5% YoY between April and June; the highest increase in a decade. FMCG sales was up 5.3% in rural markets and 12% in cities from a year earlier. However, consumption in villages only grew by 2%. Analysts believe the high increase in sales was largely due to the government offering free food grains, notably atta, which saw a growth of 8.5% during the quarter.

If we look at the overall year, it was a rewarding period for Indian investors, where large caps rallied substantial 33%, midcaps surged by 56%, and small caps excelled with an impressive 63%, as indicated by the respective indices.

Carnelian Capital Compounder Fund aims to invest in a concentrated portfolio of 25 long-only stocks within its QARP framework, focusing on capturing the trillion-dollar Indian market opportunity. In response to macro headwinds and geopolitical issues, all flagship schemes have reportedly delivered decent outperformance versus its benchmarks. The portfolio is reportedly evaluated within two broad baskets--Magic (50%-60%) and Compounder (30%-40%)--to identify companies with visible change and a blend of sustainable earnings growth.