With the rise in first-time investors in the stock market, experts provide guidance on sectors and categories to invest in. They suggest considering capital goods and consumer sectors for potential revenue and margin benefit. IT and BFSI sectors also present growth opportunities due to increasing IT spending and outsourcing in India. Additionally, experts recommend large-cap and blue-chip stocks for first-time investors to benefit from policy rate cuts and potential inflows of foreign investors’ money.
Generative AI has a significant impact on Gross Value Added in the financial services sector and could contribute an additional $66 to $80 billion by 2030, according to a survey conducted by EY. The BFSI sector has recognized the potential of Generative AI and is implementing it for various use cases. However, companies need better preparation to navigate this digital transformation.
Kotak Institutional Equities has ceased to recommend Indian mid-cap companies as it finds limited upside potential following the significant surge in the mid-cap index this year. The rally, driven by irrational exuberance among investors, has raised concerns about a potential market correction. Most of the stocks in Kotak’s model mid-cap portfolio are currently trading near their fair values. The brokerage has found limited opportunities for significant upside potential outside of the banking, financial services, and insurance sector. Kotak has also raised concerns about the quality of certain stocks due to weak execution and governance in the investment sector.
