GR Exclusive: Which Are Attractive Bets In The Stock Market For Financial Freedom?

As India celebrates its 75th Republic Day on January 26, investors could vow to prepare a portfolio of diverse stocks for financial freedom ahead. The Republic Day marks the constitution of India which came into effect on January 26, 1950. After Republic Day, Manish Chowdhury, Head of Research, StoxBox told GoodReturns.In that amidst the global arena which has tints of uncertainties, domestic themes are expected to fare well.

He recommends a host of segments where investing in stocks could be favourable after Republic Day. He likes capital goods stocks for the medium to long term, while he believes pharma could general mid-teen growth in 2024 and hence they're attractive bets too. Further, he believes PSU stocks which have been on sky-high levels since 2023, have potential to continue performing strongly ahead as well.

When asked about which stocks to invest in after Republic Day, Manish Chowdhury, Head of Research, StoxBox told GoodReturns.In that "with uncertainty in the global arena, geopolitical tensions, and an expected slowdown in global economic growth in 2024, our sense is that domestic themes should fare well vis-à-vis sectors with large global exposure."

Chowdhury believes that the capital goods sector looks attractive from a medium to long-term perspective as the central government has been at the forefront in reviving capital expenditure and the healthy balance sheets of the private sector are likely to help them participate in the capex cycle. With the capital goods sector benefitting from the tailwinds of a strong economy, companies excelling in execution and securing more orders are likely to sustain their valuations.

He added, "Another sector which looks interesting is the pharma sector wherein many domestic-focused companies are expected to generate mid-teen growth in 2024 amid a focus on new product launches, pick-up in volume growth and improved demand for generics and branded products."

Further, Chowdhury said, "The proactive and positive government initiatives have restored investor confidence in PSU stocks which was evidenced in their stock performance over the last year. Additionally, a higher focus on operational efficiencies, improved execution capabilities, and a distinct move towards professional management have instilled a sense of assurance amongst market participants. With strong earnings visibility, attractive valuation and steady dividend payouts, we still expect PSUs to perform strongly going ahead."

In a year, Sensex has gained by 11,369.77 points or 19.16%, while Nifty 50 has surged by 3,748.25 points or 21.29%. In 5 years, both Sensex and Nifty outperform the global market with an upside of 94% and 97% respectively. In the early days of 2024, Sensex and Nifty 50 also touched their lifetime highs to the tune of 73,427.59 and 22,124.15 respectively. Defence, PSU, and IPOs have been some of the outperformers since last year.

As per Wiki, the Constitution of India is the supreme law of India. The document lays down the framework that demarcates fundamental political code, structure, procedures, powers, and duties of government institutions and sets out fundamental rights, directive principles, and the duties of citizens, based on the proposal suggested by M. N. Roy. It is the longest-written national constitution in the world

On Friday, President Smt Droupadi Murmu led the Nation in celebrating the 75th Republic Day from Kartavya Path in New Delhi on January 26, 2024. French President Mr Emmanuel Macron has arrived as the Chief Guest at the parade, which is set to showcase India's rich cultural diversity, unity & progress; its military prowess on the back of increasing indigenous capabilities, and the growing Nari Shakti. Based on the twin themes of 'Viksit Bharat' and 'Bharat - Loktantra ki Matruka', this year's parade witnessed the participation of around 13,000 Special Guests - an initiative which will provide an opportunity for people from all walks of life to take part in the celebrations and encourage Jan Bhagidari in this national festival.