Devang Mehta from Spark Private Wealth recommends that investors focus on capital expenditure-oriented companies, particularly in the capital goods and power automation sectors, as they are likely to benefit from government infrastructure spending. He also highlights potential in corrected consumption-oriented stocks, such as Maruti, for those with a medium-term investment horizon. Furthermore, Mehta notes the upcoming IPO activity and the importance of selective investments in the current market.
Devang Mehta, Director at Spark Private Wealth, emphasizes the importance of selectivity for investors in the current market landscape. He advocates for an investment strategy focused on capital expenditure (capex)-driven sectors, particularly within capital goods and power automation, which stand to gain from anticipated government spending on infrastructure. Furthermore, Mehta highlights the potential of certain consumption-oriented businesses that have experienced recent corrections, specifically noting Maruti’s price decline as an attractive opportunity for investors with a medium-term horizon. Mehta clarifies that the goal should not solely be to invest in companies that have witnessed declines of 25% or more; rather, he suggests that investors identify compelling themes within the market. He remarks on the prevalent discussions surrounding banks, acknowledging the variances in performance among both private and public sector banks. The upcoming IPO market seems promising, with significant fundraising anticipated in the coming week, which suggests a revitalization in the civic enthusiasm for equity investments. However, Mehta expresses caution regarding the valuations of these new offerings, noting that many are trading at heightened levels compared to their initial pricing. He comments on emerging challenges in the automotive sector, particularly for companies such as Ola Electric, citing increased competition and fluctuating consumer demand as pivotal concerns for the immediate future. Amidst the market corrections, Mehta observes a noteworthy decline in stock valuations across various sectors. He reiterates that both capex-oriented and selected consumption-oriented stocks present viable investment opportunities. For those prepared to adopt a long-term investment perspective of one to two years, he indicates that focusing on these themes could yield significant returns.
In the context of fluctuating market conditions influenced by economic policies and global trends, investors are urged to be judicious in their investment choices. The sectors identified by Devang Mehta—capital goods and power automation—are strategically significant due to their alignment with government infrastructure projects, which are expected to drive growth. The recent corrections in various stocks also provide unique opportunities for profit, emphasizing the relevance of both capex and consumption-oriented investment strategies.
Devang Mehta advises that investors should concentrate on capex-driven sectors, such as capital goods and power automation, to optimize returns in the current market environment. The anticipated growth in these domains is fueled by government infrastructure spending, alongside potential gains from select consumption-oriented businesses that have recently corrected. A cautious yet optimistic investment stance, particularly focused on identified themes, could yield favorable outcomes for long-term investors.
Original Source: m.economictimes.com
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