Stock market today: A nosedive correction in banking stocks, along with concerns over delays in US Fed rate cuts, impacted market sentiments, say market analysts.
FIIs expected to increase allocations in India due to clear growth visibility. Budget 2024 may focus on capex, indigenisation, and manufacturing. Defence, railways, power, capital goods, and real estate likely to be in focus. Pharma sector seeing a rally due to stable pricing environment and expectations of favourable generic pricing in 2024. Investors should focus on remaining invested and sticking to planned asset allocation.
Vikas Khemani of Carnelian Capital Advisors discusses the growth potential of the pharma sector and the positive outlook for IT companies like TCS and Infosys. He believes that the underperformance of pharma over the past seven to eight years is coming to an end, with a promising trend emerging in both the US and domestic markets. Khemani also highlights the long-term investment opportunities in the IT sector, particularly with the decline in US interest rates.
Foreign institutional investors (FIIs) are showing increased interest in investing in India, which could lead to a significant influx of foreign money in dedicated funds, says Prashant Khemka, founder of WhiteOak Capital Management.
Vinay Jaising says: Capex investments have grown 5.6x in the last decade and now account for 3.3% of the GDP (not including PSU spend or state spend). In absolute terms, we expect over 30% growth YoY in capex expenditure by the government. Rural investments, which were a bit lower in the last two years, should get a fillip as well in both the budgets of at least 10% YoY.