Krishna Sanghavi, Chief Investment Officer at Mahindra Manulife, shares his views on the Indian stock market’s potential for growth in 2024 and beyond. He believes that both Aggressive Hybrid Funds, which mix stocks and bonds, and Multi Asset Allocation Funds that include stocks, bonds, gold, and silver, could help investors grow their money while spreading out risk.
Despite some global troubles and a tough earnings season in H1FY25, Sanghavi thinks the Sensex and Nifty could show 9-10% gains by the end of 2024. However, predicting the market for 2025 is tricky. While some believe we might see gains, Sanghavi thinks they may be more likely later in the year.
As 2025 approaches, many investors are adjusting their portfolios, hoping to benefit from increased government spending and possible surprises in upcoming earnings reports. Sanghavi advises being cautious and smart with stock choices because the effects of government spending can take time to show results.
After recent elections in Maharashtra, there’s been a surge in buying stocks related to infrastructure and public sector companies (PSUs). Sanghavi points out that the manufacturing sector will drive India’s growth, with strong support needed from PSUs.
If someone wants to invest Rs 10 lakh and has a moderate risk appetite, Sanghavi suggests focusing on hybrid funds. This means splitting investments between stocks, bonds, gold, and silver for better growth and safety.
The IT sector has done well recently, thanks to better earnings and a lower rupee. As we move into 2025, it will be important to watch how global rates change and any tax reforms in the U.S.
Looking ahead, Sanghavi believes areas like manufacturing, infrastructure, power, and finance will do well in the long run due to their growth potential. However, risks still exist, such as slow growth predictions and possible drops in foreign investments, which could affect the current market rally.
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