Dec 23 2023, 09:17
Nifty to t in 2024; these 4 sectors will attract FPIS:
In trade on Friday, the 50-stock index was trading at 21,362.25 points, up 0.5% from the previous close.
Notwithstanding the benchmark Nifty50 so far in 2023, the index is all set to scale 24,200 points in 2024, buoyed by strong inflows from both domestic and foreign investors, according to brokerage firm ICICIdirect.
The target of 24,200 points implies an upside potential of 13% from the current levels. In trade on Friday, the 50-stock index was trading at 21,362.25 points, up 0.5% from the previous close.
In 2023 so far, foreign portfolio investors have net bought Indian shares worth nearly $23 billion, whereas domestic institutional investors have infused close to $20 billion.
"Deepening domestic liquidity and stable currency has played a crucial role in curbing the volatility, and we expect them to remain lower in the coming months as well," the brokerage
said in its report.
While the Lok Sabha elections in India in early 2024, and Presidential elections in the US towards the end of the year may trigger volatility, the declines are likely to be limited, the brokerage said.
"We expect volatility to be sticky around current levels in coming months. Hence, in the first half of 2024, one should adopt a "buy on dips" strategy," it said.
Sectoral Flows:
There are four sectors according to the brokerage, which will lead Nifty50 towards 24,200 levels, and these are automobiles, BFSI, cement, and healthcare.
Healthcare:
Stocks in the healthcare space saw a good reversal as they have witnessed significant allocation from FPIs since the September quarter of 2022. Moreover, during the period of outflows also, the sector saw minimal outflows.
As a result, ICICIdirect expects fresh flows should continue in the healthcare space, which should trigger further outperformance in the months to come.
Construction and Metals:
These two sectors may also attract higher inflows from FPIs once interest rates start trending out next year and see them outperforming the market in 2024.
source: et
Dec 23 2023, 09:29