In an interview with ETMarkets, Vikram Kasat, Head Advisory at Prabhudas Lilladher Pvt Ltd, shared insights on the Indian stock market and offered advice on stock selection. Here are some key points from the interview:
- Q1 2024 Results: Q1 2024 was the first normal quarter since Q1 2020, without any major COVID-19 disruptions. The demand scenario in India is mixed, with green shoots seen in sectors like 2-wheelers and FMCG in rural areas. Urban discretionary spending is showing seasonal upticks in certain segments, but overall, some discretionary sectors are still under pressure. However, segments like travel, tourism, and wedding-related spending are displaying strong growth.
- Small & Midcap Space: The small-cap space is intriguing, especially after the COVID-19 pandemic, as new opportunities have emerged in India, particularly in tech and AI-driven innovations. Investors are looking for alpha growth in these sectors, but it’s crucial to assess the fundamentals and allocation.
- Railway Stocks: The railway sector in India has received substantial allocations in the Union Budget, and there’s a strong focus on railway infrastructure development. This has positively impacted railway stocks. Additionally, the government’s initiatives, such as a production-linked incentive scheme for train component manufacturers, are further boosting this sector.
- Investing Advice: For someone looking to invest fresh money in the equity markets, Kasat suggests maintaining an optimal mix of large-cap and mid-cap companies with a focus on valuations. He recommends specific stocks for large caps, including D-Mart, ICICI Bank, Reliance Industries, and SBI, and for midcaps, he mentions Ashok Leyland, Safari, Chalet Hotels, among others.
- Renewable Energy: Kasat sees the renewable energy industry as a long-term wealth creator. He highlights the advancements in solar, wind, and hydrogen segments and believes that India’s active involvement in renewables positions it as a significant player in this space.
- Stock Selection: Kasat’s stock selection mantra includes looking for companies with strong management, benefiting from industry tailwinds, having limited competitors, offering robust products or services, and being available at comfortable valuations.
Please note that these insights provide a general perspective on the Indian stock market and should not be considered as specific investment advice. Individual investors should conduct their own research and consider their financial goals and risk tolerance when making investment decisions.
Source: The Economic Times
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