Where should equity investors invest for next one year?

The domestic equity market has been doing well despite turbulence amid inflationary pressure, global sell-off and war-led global tensions. However, these factors do not seem to hinder the long term growth of the Indian equity markets, believes Niraj Kumar, chief investment officer, Future Generali India Life Insurance as he says that India is relatively better placed. He discusses the factors that have led to good performance in the domestic equity market.

While banking and finance is Kumar’s favourite sector, he sees opportunities in aviation, automobile, commodity-related sectors and telecom. “Aviation and travel-related sectors which were severely impacted during the last two years, hit by the pandemic, are witnessing stupendous growth,” says Niraj Kumar.

He adds that this kind of growth is expected for at least one more year. Kumar cautions investors of the consumption-related segments at least for the coming six months. He says there could be many negative surprises in line due to the rising inflation.