How will the market show in the new year, which sectors will be profitable and where to stay investor
New Delhi: Investors are the only waiters of the new year. Whether they are the stock market investors or those who invest in the general savings plan or who choose traditional investment options like Fixed Deposit (FD), Gold and Savings Account. In terms of investment, savings, and returns, a lot of changes from the new year. The interest rates for small savings schemes, which are revised on a quarterly basis, the general budget presented in February and the changing interest rate on the deposits by the banks, enables the investors to actively invest in the new year. This is because ITR has to be filed in July of the new year where you have to give all information related to your savings and tax saving.
Investors’ interest is more about knowing how the market will perform this year, where and in which sector they will get an opportunity to earn big profits and investing in them will be an unwise decision. If you are interested in knowing this as an investor in the new year, then you should read this news. We have talked extensively in this regard with Dr. Ravi Singh, Head Research, Broking Firm, Karvy Commodity.
How will the market be in 2019?
Dr. Ravi Singh said, “There will be ups and downs in the market during the year 2019, but this year investors will get good opportunities which have some major reasons, this year, there will be general elections in the country. With the increase in interest rates, now it is less likely to grow further, there will be liquidity in the market, which is a good thing. The trade-off between the US and China is in 2019 Talking about the interest rates of banks, the possibility of populist planning in the budget is likely to be soft, which will benefit the common people by making the loan cheaper and also the banking sector. “
Which sectors will be worth investing in this year?
Dr. Ravi Singh told that five sectors are expected to perform well this year, which will directly benefit the investors. These include the banking sector, pharma sector, IT sector, the auto sector, and consumer durables.
The banking sector of the country is currently undergoing correction and improvement. Our rupee is strengthened by the decline of crude, the country’s forex reserves are in a strong position, so banks are likely to lower the interest rate on the loan. With the reduction of interest rate on the loan, the banking sector will also benefit with the common man. The country’s banking sector can do better in the year 2019. Dr. Ravi Singh said that the central government is stressing on the recapitalization of banks, which could improve the loan growth. It can help the banks to solve their NPA issues and revive positive economic growth. The maximum investment of mutual funds is also included in the banking sector. If seen practically, changes in the Indian economy would not be possible without improving the banking sector. NPAs of most government banks are at the highest level. There are enough banks whose net worth is higher than their net NPAs. In the next 3-4 quarters, this recovery can be seen, when it will happen then the government bank will be in good condition and they can see a new rally.
In the year 2019, the country’s pharma sector is also expected to perform better. Dr. Ravi Singh told that companies like Sun Pharma and Lupine are expected to do better this year. At the same time, softness in the securities on Indian pharma companies is also giving better signals for this sector. At the same time, the treatment of the country is cheaper than all the countries of the world, because many people are giving special treatment to India. Dr. Singh informed that the Government has recently launched the Aishwarya Bharat Campaign which will ensure deep penetration of health services across India. They will work to accelerate the demand for medical services. In the United States, consolidation in the pharma sector could reduce the pressure of pricing on the area. The upcoming mergers and acquisitions will accelerate the global pharma sector. That is why a positive attitude can be seen in this sector.
If interest rates are cut on loans from banks this year, then obviously auto-lending companies will get their customers exponentially. Due to the availability of cheap raw material and low availability in low budget, it is expected to book good profits of auto companies this year. Singh said that the budget of 2019 is going to be very important for the auto sector. In the upcoming budget, the auto sector is expected to have many important support points. A direct tax is expected to be lower in the budget by the government and it is likely to benefit the auto sector directly. Not only this, there is a possibility of the heavy load of electric vehicles in the coming years and by the end of March, some new companies may also have new launches.
Major IT players like Tech Mahindra, TCS and Infosys have benefited from the strengthening of the rupee. These types of companies perform better and they get good performance in the market in this situation because a large part of their revenue comes from the US. Such companies take advantage of a large surplus which is common for them. Currently, the rupee is trading at 68 to 69 level and it can be seen trading near the comfort zone of 70. Due to cheap labor and low costs in India, some companies are making an idea of their operations in India. This is also a positive sign for the sector.
It is a sector that performs better in every situation. Dr. Singh says that the major consumer durables companies like Hindustan Lever and Dabar perform better in every situation because India is a concept-based economy where the impact on consumption is less. So, in the year 2019, this sector is also expected to perform better.
As the strength of the purchasing power of the people of the country is growing, there is hope of better till the long term of the sector from the middle period. A recent study shows that there has been a significant increase in the sale of luxury goods among rural and semi-urban populations. If the trend of this growth continues, the consumer durable sector is expected to be positive.
l am Rananjay Parmar and l work with Credence Research Limited is a marketing consulting and research Agency that is focused on the United States market and the United Kingdom. We are specialized in primary data collection and offer our clients relevant information and advice through the help of adequate research analysis and conclusions.