Mumbai, November 16, : .As India’s economy recovers faster, it is possible that the next multibagger stocks will emerge from power, realty, and IT.Lately, banking, PSUs and even the stocks of brokerage firms have shown an upward trend.Recently, there has been an uptrend in banking, PSUs, and stocks at brokerage firms.
However, steep valuations have somewhat subdued investors’ interest, said industry experts.According to industry experts, however, investors are less interested in steep valuations than before.
Nonetheless, an accelerated economic recovery has boosted demand for sectors such as power and tourism.However, a rapid economic recovery has increased demand for power and tourism.
Consequently, stocks of companies in these sectors hold potential for giving future healthy returns.These sectors offer potential future returns and stocks can be a good investment.
“IT sector has seen tremendous growth in the last two years since the lockdown as more and more companies move towards making themselves digitally equipped to tackle any such situation in the future,” said Vijay Dhanotiya, Senior Research Analyst, CapitalVia Global Research.Vijay Dhanotiya Senior Research Analyst at CapitalVia Global Research stated that the IT sector saw tremendous growth since the lockdown.
More and more businesses are now digitally prepared to deal with any future situation.
“We have also seen strong demand environment, sustained margins and improved cash flows which is expected to continue and hence we believe it will be one of the outperforming sectors in the market.”.We have seen strong demand, stable margins, and increased cash flows.
This sector is predicted to be one of our top performers.
Besides, he cited power sector stocks to hold great potential.
He also mentioned the great potential of power sector stocks.
“Indian power sector has seen outstanding demand growth and India has become the fourth largest energy consumer in the world.
The demand for power in India is exceptional and India is now the fourth-largest energy consumer.Power sector has also seen growth due to the government policies as well as the demand increases.
The government policies and the increase in demand have also contributed to growth of the power sector.
“Indian government has allowed 100 per cent FDI in the sector and has allowed the private players to enter the market.
The Indian government allowed 100% FDI to the sector, and allowed private companies to access the market.The sector is seen as one of the top outperforming sectors as the demand of energy is sought to increase at an unprecedented pace.”.This sector is regarded as one the best performing sectors, as energy demand is increasing at an unimaginable pace.
Furthermore, MOFSL’s advisory subsidiary Teji Mandi, CIO said that travel and tourism sector is expected to “do well on account of the opening up of the economy and revenue consumption”.Additionally, Teji Mandi (MOFSL’s advisory branch), CIO, stated that the openness of the economy, and increased revenue consumption, will be a boon for the travel and tourism industry.
“Even real estate as a sector is at an inflection point on account of low interest rates, tax savings on buying houses and increase in people’s affinity to buy houses.”.Low interest rates and tax savings for buying homes, as well as an increase in the desire to purchase houses are all contributing factors to real estate’s inflection point.
“Furthermore, resumption of office life should help to increase demand for commercial real estate as well.”.”Furthermore the resumption office life will help increase the demand for commercial real property as well.”
According to Rahul Sharma, Co-Founder, Equity99, sectors such as real estate, specialty-chemicals and automobiles are guiding the next stage of rally.Rahul Sharma (Co-Founder Equity99), stated that sectors like real estate and specialty-chemicals will be guiding the rally’s next phase.
“This sector (specialty-chemicals) has sawn some correction in recent times due multi-fold rise in raw-material prices,” Sharma said.
“However, considering the increasing demand and steady increase in end products price by companies we expect the raw material price increase to not have significant impact.”.We expect that the increase in raw material prices will not be significant, given the rising demand and the steady rise of end product price by businesses.
In addition, he pointed out that automobile sector has taken a huge hit by chip shortage crisis and is available at “good discount”.He also pointed out the chip shortage crisis has had a major impact on automobile industry and that it is now available for purchase at a “good price”.
“However, we think that correction in this sector is over and is ready for next stage of up-move.”.We believe that the sector has entered a correction and are ready to move on to the next phase of upward mobility.
“Also there has been significant demand for EV vehicles and most companies are launching many EV models.”There has also been significant demand and many companies have launched EV-powered vehicles.We are bullish on this sector and expect a good move here.”.This sector is a hot topic and we expect to see a positive move.
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