As the financial markets venture into 2024, investors face market opportunities and heightened volatility. Nishit Master advises investing in good-quality companies with consistent positive cash flows to shield against anticipated turbulence. Mohit Ralhan recommends a comprehensive portfolio review, rebalancing allocations to align with risk tolerance. He cautions against poor-quality companies and suggests implementing stop-loss mechanisms to protect profits. Alok Agarwal advises against timing the market, emphasizing disciplined rebalancing and asset allocation. Varun Saboo recommends strategic allocation with a focus on large caps for stability and growth potential.
Varun Saboo of Anand Rathi Shares and Stock Brokers, recommends allocating 70-75% of the portfolio to largecaps, with the remaining in small caps and only high conviction in mid-caps. He believes that valuations are high for midcaps but opportunities are available in large caps and small caps. He expects the upcoming Budget 2024 to focus on infra, power, and may include populist measures benefiting consumer stocks. Sectors like defence, power, and discretionary spends are likely to be in focus.
Varun Saboo says: "Prices of most products have literally doubled in the last three years. All these consumer companies – be it FMCG, be it discretionary names, be it auto companies – have seen a huge inflation. We have seen products going up around 70-80% to about 100%. Despite that, we have seen volume growth."
Varun Saboo says: “I would stick to largercap IT names than the midcaps for now but I do not see a challenge, I do not see corrections in the midcap space also in IT space particularly. And yes, these new-age IT names will do very well in this environment. We are very positive on MapMyIndia.”
“Power is a multi-year story. The power stocks have just started reacting. There can be a very sharp run from here also. Although we do not have any formal coverage, I am again highlighting that this space itself is becoming very attractive. So, the power story can be interesting. ”