Indian Markets Exceed Expectations in 2023, Forecast Remains Optimistic for 2024, States Shriram Life Insurance CIO

Indian Markets Exceed Expectations in 2023, Forecast Remains Optimistic for 2024, States Shriram Life Insurance CIO

VoM News Desk | December 25, 2023 | 11:30 AM IST | Breaking News | Follow on Google News

Indian Markets Exceed Expectations in 2023, Forecast Remains Optimistic for 2024, States Shriram Life Insurance CIO

Indian Markets Exceed Expectations in 2023, Forecast Remains Optimistic for 2024, States Shriram Life Insurance CIO

Ajit Banerjee, Chief Investment Officer of Shriram Life Insurance Company, reflected positively on India’s remarkable market performance in 2023, asserting that the domestic market’s trajectory appears promising for 2024.

Banerjee shared his insights in an interview with Mint, expressing optimism about the sustained inflow of foreign capital.

Highlighting the market’s exceptional performance, Banerjee noted that in the calendar year 2023, Indian markets emerged as among the top-performing globally.

He outlined the impressive returns, indicating that large-cap stocks yielded approximately 15%, while mid and small-cap stocks generated around 40%.

Additionally, the segment of Public Sector Undertakings (PSUs) delivered a remarkable 70% returns, credited to the government’s emphasis on infrastructure development and the ‘Atmanirbhar Bharat’ initiative.

Banerjee shared a comprehensive outlook for 2024, forecasting a continuation of positive market momentum.

He anticipated Foreign Institutional Investors (FIIs) to persistently invest in the Indian market, bolstered by Domestic Institutional Investors (DIIs) and retail participation. However, he cautioned that although the market is expected to remain positively inclined, the returns in 2024 might not match the magnitude of 2023 due to already incorporated positives.

He also highlighted potential challenges, such as global economic conditions, the economic recovery in China, and geopolitical crises.

The investment expert pinpointed sectors poised for growth in the upcoming year, identifying Banking, Financial Services, and Insurance (BFSI), Infrastructure, Capital Goods, Cement, Realty, and Information Technology (IT).

He suggested considering long-term exposure to the IT sector as rate cuts loom on the horizon.

Banerjee underscored the Indian economy’s favorable position for growth but acknowledged the need for increased consumption in the rural economy. He advocated for continued government focus on infrastructure investment, emphasizing that schemes like Production-Linked Incentives (PLI) and strengthening the manufacturing sector are yielding positive results.

Moreover, he emphasized the importance of simplifying rules and tax laws to enhance global competitiveness.

Anticipating the upcoming Budgets, Banerjee expressed expectations for measures to bolster rural consumption and welfare schemes in the Vote on Account. He emphasized that the full-fledged budget post the general elections would likely focus on welfare schemes beneficial to the common populace.

Regarding rate cuts, Banerjee addressed the commentary from the US Fed and the RBI, suggesting that the US may initiate rate cuts in the second quarter of 2024 while the RBI’s Monetary Policy Committee might maintain a pause until the first half of the financial year 2025, aligning with liquidity management measures.

VoM News Desk

VoM News is an online web portal in jammu Kashmir offers regional, National & global news.