Looking for hidden gems? Look into these 3 sectors: Anshul Saigal

I would say the time for health care in general has come back and if any of these opportunities come because of these one off events, I think those will be an added advantage.

Coming to consumer stocks, it is better to be pretty selective right now. I expect one more quarter of subdued volume growth. But my sense is that with the onset of the festive season post September onwards, we will start seeing consumption doing pretty well across most of the categories. So players who have really established or have a strong foothold in terms of their products, in terms of pricing and target customers like Trent are doing exceedingly well.

Under the two terms of the Narendra Modi-led government, Dalal Street investors had a good time despite implementing demonetization, GST, and the COVID-19 pandemic. The Nifty 50 has doubled in value in 9 years, with foreign and domestic institutional investors pouring in a net of $49.21 billion and ₹7 lakh crore, respectively. Post-pandemic, Indian equity markets increased significantly, making it one of the best-performing emerging markets in the MSCI index. The IT sector gave the best returns to the investors, followed by the financial services and FMCG sectors. Investors remain bullish on India due to its positive macro side improvement and stability.

India remains well positioned in the longer term, despite the short-term risk of capital outflows prompted by investors wishing to lock in gains, according to Jonathan Schiessl, deputy CIO of Westminster Asset Management. Schiessl believes that while there is a degree of exuberance in the market, this particular period of selling-off is simply driven by investors looking to cash in on profits. He stressed that India has outperformed China recently, and risk of a trade war between the two is not new.

Get into more diversified assets; equities are too expensive, says Maneesh Dangi. “Within India versus US, you would look at India more favourably versus US right now. But again, in absolute terms you will have to be underweight equity, because equities both in India and US actually are pretty expensive.”

“I am sure that as the global volatility settles down, whether it is in three months, two months or six months, nobody knows, India will again stand out and do very well because there is no other market in the globe which can offer India's profile at this point in time.”

In the last two years there has been a kind of a de-rating in multiples. For example, if you were to look at two-year returns on Nifty,

Kotak AMC's CIO Equity, Harsha Upadhyaya, highlights the growth potential of banking, industrials, autos, and cement sectors in the Indian economy. Banking is set to have significantly higher earnings growth over the next two years as compared to the broader market. However, Upadhyaya does not see the auto sector continuing its rally due to lower-than-expected volume growth. Instead, the growing demand in the capital goods industrial segment, driven by overall investments from the public and private sector, may be a preferred area of opportunity to outperform the market.

With global economic uncertainty persisting, and central banks around the world continuing to provide liquidity to the markets, it is expected that there will be positive returns for investors in the near future, even in the event of a correction. While there are still some risks to consider, such as regional banks in the US, overall, the global economy is doing well. Indian earnings are looking robust, and while valuations are becoming attractive, there is still scope for further compression.