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Volume IconHow does Andrew Holland see markets play out in Samvat 2079?

Andrew Holland, CEO, Avendus Capital Public Markets Alternate Strategies spoke to Business Standard's Puneet Wadhwa on the opportunities and pitfalls investors should be mindful of in Samvat 2079

ImagePuneet Wadhwa New Delhi
TMS

Andrew Holland

Q1: Diwali is all about happiness and the festive spark that brings cheer all around. Is the spark missing this time as far as the market action is concerned?
Ans:

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>Optimistic on the road ahead for the Indian markets
>Global backdrop unsupportive; too many negative cues
>From economy to flows: Several positives for Indian markets


Q2: The markets, in terms of headline number for the frontline indices, have not done much this year. However, there have been stock specific stories. Is that how the markets will be in the foreseeable future?
Ans:
>Possible; investors must focus on ‘themes’
>Key theme for 2023: Corporate capex cycle globally
>Traditional capex plays, new themes such as semiconductors should do well
>China+1 strategy; electronics industry India to boom


Q3: Is there any silver lining in store for the markets in Samvat 2079? What are the key themes or sectors you are working with for the next year where investors could park their money?
Ans:
>US Fed, other central banks to hold rates in 2023
>Pivot will be reached on the onset of recession; rates likely to fall thereafter
>Drop in rates will be good for markets; India will stand out then
>Dollar likely to weaken; emerging markets (EMs) will do well
>Key themes for 2023: Banks, autos and auto parts, capex-related plays, electronics


Q4: Rearrange these asset classes in your order of preference in terms of the likely returns in the next one year starting with the largest first – gold, large-cap stocks, mid-and small-caps, real estate, bonds and fixed deposits. Or just stay in cash?
Ans:
>This is a good time to lock into higher FD rates
>Next big allocation should be to equities
>Markets to see around 12% return in 2023
>Stock pickers market; choose the right sectors and stocks


Q5: Your advice to retail investors for the Samvat 2079?
Ans:
>Continue with the SIPs
>Indian markets have been consolidating; resilient
>Explore different asset classes. Diversification is key

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First Published: Oct 18 2022 | 7:00 AM IST

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