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Muhurat trading: Nifty earnings to grow at 16% over FY22-24; Travel, QSR among key themes for Samvat 2079

India being largely a domestic consumption-driven economy, seems to be on a better footing relative to the developed world which is grappling with high inflation-slow growth challenges.

Muhurat trading: Nifty earnings to grow at 16% over FY22-24; Travel, QSR among key themes for Samvat 2079
Nifty earnings to grow robustly at 16% CAGR over FY22-24

Indian equity markets head their own in Samvat 20178 despite global, domestic headwinds such as high inflation, rising interest rates, currency swings, geopolitics uncertainties and the onslaught of FII selling. Despite the huge volatility, Nifty since last Diwali lost marginal ~3% (as of 17 October), compared to 20-30% fall in most of the global indices. Going ahead too, analysts at Motilal Oswal expect Nifty earnings to grow robustly at 16% CAGR over FY22-24. India being largely a domestic consumption-driven economy, seems to be on a better footing relative to the developed world which is grappling with high inflation-slow growth challenges, according to them.

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Samvat 2079: Key themes

Credit growth & Industrial Capex: India’s credit growth has improved to 15%-16%, highest in the last 9 years, which is positive for banking and financial services. Corporates are doing CAPEX after several years which bodes well both for financials as well as capex-linked sectors, the brokerage noted.

Discretionary Spending: The festive season this year has started on a positive note after 2 pandemic-hit years. The domestic demand and discretionary consumption in India provide a silver lining amidst the global dark clouds.

Travel & Tourism: The food, travel, and hotel industry has seen a sharp recovery in 2022, as more and more people are travelling after 2 years. The segment is also witnessing strong demand in the ongoing festival season.

Niche sectors with strong growth potential: Footwear, Healthcare, and QSR as India’s consumption boom is providing impetus to many segments which may be small now but have huge growth potential.

According to Siddhartha Khemka, Head – Retail Research at Motilal Oswal Financial Services, investors who wish to start their fresh investment in equity can participate in Muhurat trading. “In Samvat 2079, we expect the equity market trend to remain positive, although intermittent volatility may not be ruled out. India is likely to outperform its global peers, given its inherent strengths while global economies may remain under pressure due to recessionary fears,” he said.

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Over the next one year, Khemka expects Nifty to deliver a return of 12-15%. “We are positive on Indian equities from mid to long-term perspective on the back of healthy domestic macros, strong fundamentals, robust earnings and upbeat festive season. The broader market has been outperforming well and is likely to remain in flavour with action in niche midcap sectors,” he added. Khemka is positive on BFSI, Consumer discretionary, Auto, Retail, capital goods, real estate.

(The stock recommendations in this story are by the respective research analysts and brokerage firms. FinancialExpress.com does not bear any responsibility for their investment advice. Capital markets investments are subject to rules and regulations. Please consult your investment advisor before investing.)

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First published on: 23-10-2022 at 11:27 IST