Navigating H2 2024: Analysts identify key investment sectors and pitfalls to dodge

Despite important volatility stemming from some home and planetary factors, Indian stock marketplace benchmarks—Sensex and Nifty 50—achieved awesome gains successful the archetypal fractional of 2024. The Nifty 50 surged by 10.5 percent, reaching a grounds precocious of 24,174, portion the Sensex roseate by 9.4 percent, peaking astatine an all-time precocious of 79,671.58. These milestones underscore the resilience and optimism successful the marketplace amidst challenging conditions.

After beardown returns successful November and December past year, the Nifty 50 ended connected a level enactment successful January, down 0.03 percent. It past gave affirmative returns for the adjacent 3 months betwixt February to April rising betwixt 1-2 percent each, pursuing affirmative macro data, complaint chopped expectations and certainty of Modi triumph successful the Lok Sabha elections. May brought immoderate election-related uncertainties, starring to a 0.33 percent diminution successful the Nifty 50. However, the scale rebounded sharply successful June, rising astir 7 percent arsenic Modi-led NDA formed a authorities for the 3rd word and governmental clarity emerged.

Among sectors, The Nifty Realty scale was the apical performer, up implicit 41 percent followed by the Nifty PSE scale and Nifty Auto, up implicit 35 percent each. Meanwhile, Nifty Pharma, Nifty Consumption, Nifty Energy and Nifty Metals precocious betwixt 15-25 percent each. Nifty Bank and Nifty Finance jumped implicit 8 percent each and Nifty IT added 4 percent. Nifty FMCG was the lone assemblage level but successful the reddish successful the archetypal fractional of 2024.

Looking ahead, the home marketplace is anticipated to proceed its upward inclination successful the adjacent six months, driven by easing inflation, advancement successful the monsoon season, and robust economical growth. Additionally, discussions astir imaginable complaint cuts are apt to signifier marketplace sentiment.

As we determination into the 2nd fractional of 2024, marketplace analysts are offering insights connected which sectors are poised for maturation and which ones investors should beryllium cautious about. With a divers scope of opinions, experts measurement successful connected their preferred concern strategies and sectors to watch. Let's research their recommendations.

We shall trim definite weights successful sectors that person done exceedingly good implicit the past mates of years similar superior goods, industrials, and PSUs adjacent though the outlook is bully it’s present much of a crowded space. We judge a much stock-specific attack needs to beryllium adopted successful these sectors alternatively than a top-down approach.

We person an anti-consensus allocation toward larger backstage assemblage banks. We are affirmative connected the chemic assemblage arsenic a abstraction wherever capex has been done and cyclical betterment is apt to person started.

Keeping the predetermination mandate successful caput we judge the authorities volition code to a definite grade agrarian distress which should beryllium beneficial for immoderate of the consumption-related sectors going ahead.

Caution is advised erstwhile considering presently overvalued stocks wrong sectors similar accusation exertion and infrastructure. These sectors, portion having semipermanent potential, mightiness beryllium susceptible to corrections if involvement rates proceed to rise. Fast-moving user goods (FMCG) companies, owed to their indispensable merchandise nature, tin supply a antiaircraft hedge against imaginable marketplace volatility.

Apurva Sheth, Head of Market Perspectives & Research, SAMCO Securities likes Private banks and FMCG sectors for H2.

Private banks and FMCG are the 2 sectors that we are presently overweight on. Private banks person underperformed sharply compared to their nationalist assemblage peers. Private banks are presently trading astatine comfy valuations providing a borderline of information successful the lawsuit of a risk-off event. FMCG stocks are apt to bash good whether you similar it oregon not but a conjugation authorities volition beryllium forced to dole retired populist measures to enactment applicable amongst voters. We person already seen a bid of populist measures from states which are soon going for elections. This inclination volition lone stitchery gait starring to betterment successful volumes for FMCG and consumption-related stocks.

Tanvi Kanchan, Head - UAE Business & Strategy, Anand Rathi Shares and Stock Brokers

Domestic cyclical maturation remains our astir preferred theme, including sectors similar power, manufacturing, infrastructure, superior goods and prime user discretionary.

In summary, the concern scenery for the remainder of 2024 presents a mixed container of opportunities and cautions. Private banks, chemicals, and user durables are among the favored sectors, portion superior goods, IT, and existent property warrant a much cautious approach. A balanced and strategical allocation, considering some home maturation and imaginable planetary risks, volition beryllium cardinal for investors navigating the marketplace successful the coming months.

Disclaimer: The views and recommendations made supra are those of idiosyncratic analysts oregon broking companies, and not of Mint. We counsel investors to cheque with certified experts earlier taking immoderate concern decisions.