00:00What is your outlook for Nifty and Sensex? What is your forecast for 2025?
00:052025 should be a much better earnings season, first of all.
00:10When we say calendar 25, it's nearly FY26, a quarter difference.
00:17For FY26 and calendar 25, the earnings should be very good.
00:23Especially this year, there has been a bit of a downturn, so chances are much better.
00:27Second, there are two more factors, why we expect that.
00:31First, interest rates are also getting cut.
00:33This has a better effect on the economy, which means purchasing power increases,
00:39companies' investing power increases.
00:42The government will also invest this time.
00:45RBI and Fed will also cut interest rates.
00:51Because of these two factors, there is a benefit on earnings and multiples as well.
00:57Accordingly, we expect a 15-20% gain in earnings.
01:05Do you have any recommendations for the sectors or stocks that investors should look out for?
01:13According to you, it would be better to invest in them.
01:16According to us, there are two sectors which are very promising to us as a firm.
01:24Banking is the most exciting sector for us.
01:28Whether you talk about private banks or public sector banks.
01:32Both are amazingly well placed in our opinion.
01:38It is best to mix them.
01:41There is no need to take a position on whether we want public sector or private sector.
01:46Both have good opportunities.
01:48We can take a mix of both.
01:50We can explore.
01:52And it is 35% of Nifty.
01:55So it is no small sector.
01:58It is the most important sector according to the economy as well.
02:01If you look at the credit growth, there is a 15-16% credit growth.
02:06When you translate it to earnings, it should be even better in earnings.
02:10That is because the entire lending capacity has not been utilized yet.
02:15As the lending capacity of banks is utilized, their ROE improves.
02:20And by improving ROE, earnings will grow faster than the lending credit growth.
02:28So this is the most juicy sector according to us.
02:31And as we have made a portfolio, I am not talking about the portfolio.
02:34My point is that by creating a mix, you are getting a PE of 10.
02:39So it is so cheap when the market of Nifty is 35% and Nifty is at 23 or 22 PE.
02:46And this is at a PE of 10.
02:48So you can understand how good the opportunity is.
02:52And I have already told you about the growth.
02:54There is a lending credit growth of 15-16%.
02:57So this is one opportunity.
02:59The second opportunity is in the power sector.
03:02Where again, you have to be careful.
03:05You have to look for the appropriate companies whose growth will be high.
03:11It will be more than double digits.
03:13It will be above 15.
03:15And which are cheap.
03:17So again, just to give you a feel of what can happen.
03:21We have made a portfolio which has a PE of 11.
03:24Okay.
03:25So this is again extremely favorable.
03:28Sorry, not 11.
03:31It has a PE of 14-15.
03:34Which is again compared to market, much much more attractive.
03:38While having growth rates higher than Nifty.
03:41So these two sectors are looking very attractive to us.
