Nimesh Chandan, who manages money for Bajaj Finserv AMC, recently shared his thoughts on investing. He believes that investors should be careful when choosing where to put their money, especially in big projects.
Chandan is very optimistic about the power infrastructure sector. He sees it as a global trend that has the potential for strong growth in the coming years. He is also optimistic about the pharmaceutical (pharma) sector, online businesses, and real estate.
Market Mood: Bullish or Bearish?
Chandan explained that the mood of the stock market can change very quickly. For example, from September to November, we saw a big shift in market behavior. Right now, he feels positive about large companies since they seem safer in terms of value compared to mid and small companies.
He pointed out that it’s essential for investors to think long-term. With global trends like renewable energy and artificial intelligence (AI) becoming more significant, finding the right investments could be rewarding down the line.
Expectations for 2025
Looking ahead to next year, Chandan believes that both the Sensex and Nifty indices could rise, even amid outside issues like global conflicts and slow earnings growth this year. Historically, the Nifty has delivered solid returns for multiple years, so there’s a chance of seeing growth again in 2025.
Chandan noted that many investors have made changes to their portfolios recently, anticipating an increase in government spending. He expects earnings to improve as the year continues.
Capex Themes and PSU Stocks
As the government may increase spending on big projects, Chandan sees a chance for public-sector companies (PSUs) and capex themes to shine again in 2025, but he advises being selective with investments.
Starting Fresh with Rs 10 Lakh
For those looking to start investing with Rs 10 lakh, Chandan recommends using a dynamic investment fund or a multi-asset fund. Large-cap funds, which focus on established companies, also present a good option because they balance risk and reward well.
Chandan’s Favorite Sectors
Chandan is particularly bullish on the pharma sector, believing it will continue to grow. The same goes for hospitals, diagnostics, and wellness trends. He also feels positive about online businesses, power infrastructure, and real estate.
Key Risks to Watch Out For
Chandan warns about potential risks that could disrupt the current market growth. He is concerned about rising prices in the mid and small-cap sectors, which have gained popularity in recent years. If the economy doesn’t grow as expected, it could be challenging for these smaller companies.
Additionally, changes in the value of the Indian Rupee (INR) due to global events could also affect the Indian stock market.