Samvat 2079: Banks, financials, auto among sectors likely to outperform till next Diwali – know what analysts say

Samvat 2079 Sectors: The majority of the analysts believe that financial sector, along with automobiles, may outperform other sectors in Samvat 2079. The financial sector will benefit from improving asset quality and better credit flow, while auto sector will gain from demand revival as well as easing chip shortage issue.

As the overall consumption is likely to rise with commodity prices softening from the second half of the financial year 2022-23 (H2FY23), they also believe consumption-driven sectors such as staples and discretionary are shall also outperform by next Diwali.

As per Roop Bhootra - CEO, Investment Services, Anand Rathi Shares, “Most domestic-oriented sectors are looking good for medium to long term growth factors. Sectors like manufacturing, specialty chemicals, financials, defence, capital goods, and consumer are better placed.”

The banking sector has been a leader in the Samvat 2078 which may prolong in to 2079 but the focus can be on housing finance companies too, Brijesh Bhatia, Senior Research Analyst Equitymaster said, adding that “the dark horses of 2021 and 2022, IT and Pharma can be the leaders in 2023.”

Banks can be in focus led by demand revival in the retail sector such as housing, auto and unsecured loans and due to corporate resolutions, Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities said in his sectoral expectations in Samvat 2079.

Similarly, the auto sector may show a gradual improvement in performance as there is an improvement in chip availability leading to higher production, also due to pent-up demand, Chouhan added.

While other sectors that are likely to be better in Samvat 2079 as per Kotak Securities are: Speciality Chemicals; Pharma; Healthcare and Information Technology.

Even Vinit Bolinjkar, who is Head of Research at Ventura Securities is bullish on the hospitality sector and recommends to Buy Shalby Hospital for the target of Rs 243 on a long-term basis as it is likely to report higher operating revenues at a CAGR of 18.4 per cent to Rs 1,159.4 crore in FY25 with normalcy returning.

While Neeraj Chadawar Head of Quantitative Strategy at Axis Securities believes the outperformance trend in domestic-oriented themes such as Banks, Domestic Industrials, FMCG, Auto, Hospitals, and Discretionary consumption themes are likely to continue in the upcoming quarters.