As the new year has begun, investors and traders are curious to know how domestic and international markets will fare in 2024. With the domestic indices Nifty and Sensex outperforming in 2023, people are wondering what's next. In this article, we bring to you what top market experts expect from 2024.

How will the US market perform in 2024?

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According to Zee Business Managing Editor Anil Singhvi, US markets can outperform Indian markets on the back of interest rate cuts, which are expected to happen this year since inflation is under control.

Singhvi recommended following a buy-on-dips strategy to invest in American markets.

Touching upon the key risks, the market expert said that unexpected wars and elections by the end of the year can have an impact on the market.

How will the domestic markets perform?

The market guru believes that the Nifty 50 can hit the 24,000 mark in 2024 on the back of positive global cues, an increase in investment by foreign institutional investors (FIIs), and if the Bharatiya Janta Party (BJP) wins with 300 seats in the Lok Sabha election.

The expert also warned of profit booking six months before or after the election.

Singhvi recommended a buy-on-dips strategy to invest in Indian markets and to keep patience, as many factors can affect the markets.

On similar lines, Sharekhan also believes that Indian markets look promising. However, it has highlighted that valuations are not cheap anymore.

"New Year 2024 appears promising, with the markets hitting a new high and economic growth being healthy, especially in the context of a slowdown globally," the report read.

It added that valuations look stretched in certain pockets, as reflected in the micro-cap rally and the euphoria in primary issues, including the SME segment. The Nifty trades at 23.4x the trailing 12-month price-earning (PE), which is not cheap but isn’t expensive either, especially given the expected earnings growth of 12–14 per cent CAGR over the next two years. CAGR stands for compound annual growth rate.

Sharekhan recommends investors prefer increasing exposure to large-caps over small- and micro-caps and value stocks at reasonable prices. It has also advised investors to stay away from growth stocks that are trading at steep valuations.

Top sectors to bet on

Singhvi listed the following sectors to keep an eye on:

-Information Technology (IT) as the sector will see a recovery this year.

-Metals on the back of a rally in the American markets.

-Power on the back of strong demand.

-Chemical on the back of strong global cues. 

-Pharma as demand in American markets is increasing. 

-Real estate as the demand is increasing. 

-Rate sensitive with expectations for rate cuts.

Sharekhan sees better times for the pharma, two-wheeler auto, and IT services spaces in addition to the core multi-year investment themes of capex (Engineering/Infra/real estate), capital (Banks/Financial Services) and consumer.

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