3 midcap baskets where earnings may grow over 20% in next 3 years: Gautam Duggad

Top PMS fund manager Saurabh Mukherjea, whose firm Marcellus handles HNI money worth around Rs 10,000 crore, has picked 4 new smallcap stocks in his Little Champs portfolio. In his bank-focused Kings of Capital portfolio, Home First Finance has been replaced with MAS Financial Services while SKF India is the new stock pick in midcap-heavy Rising Giants portfolio. Mukherjea told investors in a note that positive developments in interest rate cuts by the Fed can improve consumer sentiments and benefit stocks with global market exposure.

Anand Tandon sees a positive near-term outlook for India as incremental news flow has been positive and the RBI has put off raising interest rates. The challenge is to identify cheap sectors as those with high earning visibility have already performed well. Banking, the largest driver for earnings for the current year, has done quite well, hence the challenge is to find new sectors to invest in

The move aims to protect consumers who are investing their life’s savings in homes, especially under-construction ones while reducing grey areas in the sale agreement so that fewer disputes end up in consumer courts

“We will broadly be between 18,500 and 20,200, the previous highs that we crossed. Markets are really not going anywhere in a hurry. It is going to be a pick and choose market for all that you know. But it is a very good time to create a portfolio for the medium term, post the central elections in 2024. ”

So far in the current financial year, listed broking firms have given upto 75% returns to investors, and a majority of them have also outperformed the benchmark Sensex in the said period.

Real estate stakeholders in Mumbai express optimism due to a resilient Indian economy and sustained domestic demand. Residential and commercial office sector deals have seen positive growth, indicating a favorable outlook for the real estate industry.

Investors should be selective while participating in the market as some sectors are overvalued. However, many sectors and stocks are showing growth after years of stagnation and are available at reasonably good valuations, making it a good time to invest. The staple and chemical sectors are showing some signs of overvaluation, as are some pockets of the tech sector. In contrast, the utility sector looks interesting due to lack of investment in renewables or power in the last few years.

The Indian manufacturing sector is expected to witness significant growth in the upcoming years due to the government's focus on the sector, according to Arvind Kothari, the Founder of Niveshaay. Kothari expects renewable energy, recycling, and electronics manufacturing to emerge as promising potential wealth creators for the decade. In contrast, companies with poor cash flow and low visibility in earning growth could underperform in FY24, despite a strong earnings recovery season in Q4 anticipated.

Financial sectors stocks tend to do well, where there is inflow from foreign portfolio investors, the reason, it is their preferred sector for taking exposure to the Indian market for decades as it can also act as a proxy for GDP growth. After a gap of two months, September and October, FPI have been net buyers in the month of November and till date in December. Given the fact that in the last one year there has been a sort of underperformance by financials stocks, there is high probability that we might see some of them making a come back, we take a look at stocks from this sector where one of one of valuation matrix meets the criteria for investing for long term.

At a time when it is not possible to find stocks that can be called “fairly valued” and forget “undervalued”, but the sentiment continues to be bullish, it is tough for retail investors to control their desire to buy stocks. The fact is that this market has been in an overvalued zone for quite some time, but as they say, liquidity and sentiment can ensure that market remains in that zone for longer than anyone expects. So, for investors, it would be wise to take exposure to stocks, where a sector the overall market size is very big or the sector has reached an inflection point where the market size will grow or they have an income stream that has an element of annuity. The reason why this strategy works is that even if the valuations are expensive at the time of buying stocks, steady growth in the industry helps in normalizing the valuations of individual stocks.