Nilesh Shah predicts ABB, Siemens, L&T s continued dominance in EMI. Key players like Hitachi Energy, KSB, and TD Power drive sector growth. India aims for a $10 trillion economy, focusing on diverse sectors.
Nilesh Shah discusses India s economic trajectory, comparing it to the US and China. Shah says: "The template should be what the United States has done over 50 or 100 years rather than what China has done over the last 10 or 20 years." He highlights the importance of consumer, digital, and physical economy sectors for the next 5 to 10 years, emphasizing India s positive market outlook post-COVID.
Yields on government bonds slumped after Finance Minister Nirmala Sitharaman pegged the gross and net market borrowing for FY25 at Rs 14.13 lakh crore and Rs 11.75 lakh crore, respectively. Most experts pegged the gross market borrowing to be a little over Rs 15 lakh crore.
Post-May, FIIs will see India as the next stable place for five years. Unlike China, India is still part of an EM allocation, but that may change soon. The government s fiscal prudence and focus on mid-income housing are positive for the market. Private capital is expected to invest in the infrastructure. PSU banks may benefit from fiscal consolidation and potential privatisation. The bond market is looking favorable. FIIs are waiting for the May election outcome and evaluating China s value play. India s potential as a country allocation is not far away.
The Interim Budget announcement for 2024 presents opportunities in mid-income housing and tourism. Mahindra Holidays is a potential beneficiary of increased tourism activity, offering resorts and hotels. The budget mentions the success of organizing G20 meetings and highlights India s economic strength as an attractive destination for business and conference tourism. The tourism sector, including spiritual tourism, has opportunities for local entrepreneurship.