Cherry picking for Samvat 2079? Avoid hunting in these sectors

New Delhi: Samvat 2079 is set to kick off on Monday and Dalal Street, as always, has high expectations from the new year of the Hindu calendar. However, analysts have recommended being wary of select sectors, which could dent investors' portfolios.

Global factors including rising inflation, interest rate hikes, recessionary worries, the downturn in commodities and geopolitical crises are likely to impact the market in the coming year, according to analysts.

Amid this backdrop, they suggested that sectors with exposure to global factors such as oil and gas, metals, IT and others should be handled with more care than before.

Deepak Jasani, Head of Retail Research, HDFC Securities said continued monetary policy tightening, worsening geopolitical tensions, slow or negative growth globally and sub 5% GDP growth in India may hinder the rally. He expects metals, Oil & Gas and IT packs to emerge as top laggards.

Vinod Nair, Head of Research, Geojit Financial Services, who is negative on metals, oil, reality and infra, said, "Investors need to keep an eye on hyperinflation, global recession, hawkish monetary policy leading to a rise in interest rates and war crisis."

S Ranganathan, Head of Research, LKP Securities believes that global recessionary trends, geopolitical headwinds and rising inflation and interest rates may dent the markets. Companies with poor capital allocation will remain laggards, he added.

Meanwhile, Siddarth Bhamre, Research Head, Religare Broking said, "India is being most resilient in a very uncertain global environment. Metals and oil & gas may lack."

Tejas Jariwala, Research Head, Jainam Broking expected a muted performance from IT, auto and steel sectors whereas Sumit Chanda, Founder & CEO, JARVIS Invest sees some pain in infra, real estate and capital goods.

Vikas V Gupta, CEO & Chief Investment Strategist, OmniScience Capital suggested that commodities, metals, oil & gas producers, FMCG and consumer discretionary could be laggards.

Sunil Damania, Chief Investment Officer, MarketsMojo said that public and private banks, NBFCs and the auto sector may wind up as laggards, whereas Manish Jeloka from Sanctum Wealth anticipates the utility sector to lag in terms of performance.

(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)