Mumbai, March 13 (IANS). The Indian stock market is seeing a decline these days. Along with this, high-western stocks that give more returns are becoming more attractive for investors.
Due to lack of capital withdrawal and any major policy reforms, pressure on the market is also likely to continue in the next two quarters.
According to the report of the Cap into Investment-Smallcase Manager, a change is expected by the second half of FY 2025-26, which will prepares the platform for the earning re-trading cycle.
The Cap into Investment believes that strong income probability high-goth sectors will start getting stable.
Many shares with more than 25 percent increase on an annual basis are currently trading at the forward multiple of 15-20 times.
The report states that as the market would be strong and investors start evaluating future income possibilities, these assessments will become even more attractive.
A major liquidity event is seen as an important factor to improve the market. Liquidity has been abundant in recent years. In the coming quarters, there may be challenges on this front.
Despite this, many high-civilian sectors are expected to get strong investment opportunities.
In particular, non-essential consumption remains a major focus, which has strong possibilities for value retail, jewelery manufacturers and medium to premium hotel chains.
The power sector in transformer and transmission EPC projects is also attracting attention.
Piyush Mehta of the Capience Investment said, “Liquidity pressure and earnings may continue to volatility in the near future before the normalization, but areas such as non-essential consumption, renewable energy and specific manufacturing provide strong long-term potentials.”
He said that strategic investors are giving priority to Earning Clarity and valuation discipline to get out of this unstable environment, which is perfect for the current circumstances.
In addition, the ‘Make in India’ initiative is expected to give long -term support to the manufacturing sector.
Renewable energy sectors and data centers are also ready for continuous development due to increasing demand and stability of digital infrastructure.
-IANS
SKT/Ekde
