The consumer discretionary and cement sectors offer the strongest combination of earnings growth potential and scope for alpha generation by 2027, said Rakesh Vyas, CIO and Portfolio Manager at Quest Investment Managers, in an interview with Moneycontrol.
According to him, discretionary businesses stand to benefit from premiumisation, formalisation, growing demand for convenience and market share gains by organised players, supported by tax relief. Meanwhile, the cement sector offers growth potential, driven by sustained demand from the housing and infrastructure segments.
He believes the September-quarter results announced so far provide grounds for optimism.
"Of the results declared so far, Nifty companies have reported profit growth of approximately 18–19 percent, ahead of expectations, with limited recent earnings downgrades. This suggests improving earnings visibility, although widespread upgrades will require sustained performance," he said.
Do you believe the government's policy measures and economic initiatives will be sufficient to sustain India's economic growth rate above 7% in the coming years?