There was a rise in the market on the first day of the January series. If seen on weekly basis, in the week ending December 27, Nifty managed to close with a gain of 0.96 percent and Sensex with a gain of 0.84 percent. In such a situation, the future market outlook and DSP Banking & Fin Services Fund Talking about the strategy of Dhaval Gada, Fund Manager, DSP Mutual Fund Said that the journey of the market in 2024 was full of ups and downs. Nifty gave a return of 13% on annual basis and there was a lot of rotation in the sector this year. Good wealth creation was seen in the first 6 months. Cyclical and industrial sectors gained momentum. There were ups and downs in the last 6 months. There was growth in utilities, telecom sectors and good returns in mid and small caps.
He further said that some volatility is possible in the market in 2025. 9% earnings growth is expected in the new year. A return like 2024 is expected in 2025. Keep different categories in your portfolio. Keep a combination of large and small caps. The risk of geopolitical tension and weakening of the domestic economy will be a risk factor in 2025. The pace of the economy may slow down in the September quarter. 7% GDP is expected in the year 2025.
Talking about the FMCG sector, he said that there are challenges regarding demand in the sector. There was no earning stability in the sector. There is a problem with demand and business model.
Market returns are good in this sector
While talking about the pharma sector, he said that there was a good recovery in US pharma companies while the domestic business was also stable and the growth was also good. Market returns in this sector were good. Not too bearish, not too bullish either. There are reasonable valuations in the sector. Active management plays the biggest role.
Talking about DSP Banking and Finance Services Fund, he said that the fund was created for more than a year. Invests in banks and NBFCs. Tries to generate better returns and the fund covers more than 20% of the market. Focus was on multiple themes. Long term investment is advised. There is benefit of diversification.
Outlook on Quick Commerce? While talking he said that There has been a change in consumption patterns while growth is quite strong. Earnings growth is expected to be low. Volatility may be higher.
How will the IPO market be in 2025? While talking he said that Retail participation in India is a structural change. Moderation in the growth of IPO listing is possible. It is expected to be the same as in 2023 and 2024.
Outlook on insurance sector
There seems to be more underweight in insurance. More opportunity was seen in other spaces. Valuations remained good after October. The business model in life insurance remained good while the underweight position has been broken in the last 2 months. There were many changes in life space. Gave 7-8% CAGR returns in 3 years. Insurance is a big opportunity for the long term.
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