BFSI, Consumer Durables among top sectors to invest for 2019; here’s why

Even as we come to the end of a tumultuous 2018, which saw many the domestic equity markets returning tepidly, analysts say that 2019 could be a better year. “We are constructive on the Indian equity market with a medium term perspective. The turbulence that the Indian markets witnessed since the beginning of the year and particularly in the months of August, September and October was primarily linked to concerns on fraying of macroeconomic fundamentals of the country,” Ajay Bodke, CEO & Chief Portfolio Manager PMS said in a note.

According to Mustafa Nadeem of Epic Research,  the markets will have certain headwinds rather than sailing easily throughout the year in 2019.  The negative factor for Indian market is the negative global markets which are off their peaks and trading at 1 year lows, he said.  “The expanded volatility by 80 % from last couple of weeks has already put global sentiments in a negative perception. The favorable factor with this year end and next coming is the appreciation in the INR and Crude oil prices. INR has appreciated almost 7% in last few weeks while crude has dropped almost 44% from its recent peaks which is a most important factor. This will have significant impact on CAD,” Mustafa Nadeem said in a note.

Which sectors should investors bet in 2019?

“We prefer interest rate sensitive sectors like BFSI, autos & consumer durables as key beneficiaries of softening interest rates and improvement in domestic liquidity. Value buying may emerge in many interest rate sensitive sectors like automobiles which had seen a sharp drawdown in stock prices because of slowing demand as a result of sharp rise in the fuel prices in the previous three-four months, fears of non-availability of ample credit from NBFCs because of their problems and headwinds due to high base effect of last year,” Ajay Bodke of Prabhudas Lilladher said in a note.

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