Anand Rathi Advisors: 4 sectors with attractive investment opportunities in 2024.

Samir Bal, CEO, Anand Rathi Advisors, said in an interview with Moneycontrol that while making strategic investment decisions in 2024 in various asset classes, he would primarily look at equities, allocating a significant portion of his portfolio to this asset class.

In the present situation of economic uncertainty marked by geopolitical instabilities, he believes that the Indian banking sector stands out for its stability and progress and also in the area of economic development, infrastructure plays an important role, harmonizing with the overall growth trajectory in various sectors.

The banking sector and infrastructure are attractive investment opportunities''represent also the defense and healthcare sectors, says Sameer, who has over 20 years of experience in consulting and financial services in the US and India.

The Reserve Bank of India's (RBI)

possible action

RBI has consistently sought to maintain a cautious approach in monetary decision making and it is expected that they will refrain from raising rates for the first half of 2024. Despite the improvement in the consumer price index, which fell from 7.4% in July to 4.9% in October, there are concerns about erratic and below normal summer rains having a mild impact on the overall economic outlook.

Inflation currently remains within the RBI's acceptable range, reducing the immediate need to raise''rates.

However, uncertainties related to geopolitical tensions and the approaching election year may make it difficult to implement rate cuts.

Investment recommendations

The interview also recommends considering investments in infrastructure companies trading at attractive EV/EBITDA multiples, and draws attention to the stability of the Indian banking sector, progress in infrastructure, and investment opportunities in the defense and healthcare sectors.

The equity market potential in 2024 is also analyzed, along with possible risks associated with rising oil prices and global instability.