Sectors like FMCG, healthcare, and entertainment are set to benefit as market analysts re-evaluate stocks in light of the government s latest consumption expenditure data, highlighting shifts in consumer spending patterns
Devendra Singhal, Equity Fund Manager at Kotak AMC, is bullish on the manufacturing sector and expects a revival in overall consumption levels. He discusses the impact of liquidity, market correction, commodities, consumer sector, and utilities on the Indian market.
The long-term outlook for the consumption theme appears promising, owing to increasing incomes, a young population, and an expanding middle class, noted analysts.
“A broad-based rally in largecaps – not market cap broad-based, but sectorally broad-based within the largecap space – would be the best strategy for investors to adopt. If they want to go beyond largecap funds, then flexi-cap funds represent a good option because they normally have 15-20% or maybe up to 30% in the broader market.”