But now the question is what's in store in 2024, the year that will see the general elections and the third test for the ruling Bharatiya Janata Party. The big event is expected to keep market participants on their toes, as election years typically bring in volatility. Vijay Chandok, managing director and CEO of ICICI Securities, spoke to Nidhi Sinha, editor, Outlook Money, about what's in store in 2024 for the stock market, where investors can find opportunities and where they need to tread with caution. Here are the edited excerpts
The markets were volatile throughout 2023, though they ended the year on a positive note. Usually, the markets are also volatile in the election season. How do you see the markets behaving during the 2024 elections?
Generally, in the run-up to the elections, multiplier effects come into the economy as you find that government spending is quite robust. All that leads to consumption, which tends to be on the higher side.
But this time around, we are coming on the back of a slightly inflationary environment. So, the consumption pattern is slightly different from what we have seen in the past. We are seeing a K-shaped recovery on demand. That is something that is expected to continue. Typically, it's the fast-moving consumer goods (FMCG) sector, which gets impacted positively. This time, the auto sector is getting positively impacted, while FMCG is still flat. The other thing is that rural India also tends to showcase the consumption story.
Going forward, I think two-wheelers, rural consumption, and auto consumption are expected to show growth.
Are there other big sectors to watch?
Over a longer horizon, based on what is happening around the world as well as some of the measures of reform that the government has implemented in the recent past, I think some very interesting opportunities have opened up.
Denne historien er fra January 2024-utgaven av Outlook Money.
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Denne historien er fra January 2024-utgaven av Outlook Money.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent? Logg på
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