Regional Headline :

Expectations are mixed, volatility too may be good for some

RAVI RANJAN PRASAD MUMBAL DEC. 31

‘Year 2024 will be an event. ful year for the stock marKet with several big dates already lined up like the Lok Sabha election in the first half, Budget and RBIS rate cuts. in the second half of the year Aftrer four years, India has a strong start for the new year with fundamen tals looking strong

‘As the market has a high base with Sensex closing at 72240 and Nifty-50 at 21,731, expectations are mixed with double digit returns expected this year: Volatility may pro Vide smart investors even higher return if one waits for the right opportunity. However, January has seen_market correcting ignificantly several times ince 2008 after a bull run, One needs to be cautious as the valuation is

® FIRST HALF of the year will be dominated by elections, while the second half of the year will be shaped by monetary policy decisions, including expected rate cuts.

running ahead of fundamentals. However, largecaps could offer better risk-reward over the next fow months” said Jitendra Gohil, CIO, Kotak Alternate Asset

Managers. Vhile 023 commenced with restrained expecta

tions and notable volatili ty, Indian market wit nessed a remarkable recovery ‘in_the second half, from its March 2023 bottom. In 2024, the Indian economy will stand_out due to the challenges with

other emerging economies. India will remain the land of stability. Strong corporate balance sheets and enhanced health of the Indian banking sys tem are positive factors,” said Pranav_Harida managing_director chief _executive officer, Axis Securities.

RBI has also_strength. ened its forex reserves at $620.44 billion adding $58 billion in 2023

“2024 promises to be eventful, We anticipate the first half will be domi nated by elections, while the second half will be shaped by monetary policy decisions, including pected rate cuts. The current market rally has already factored in potential outcomes and the pos. sibility of up to three rate cuts by the US Fed Heading into 2024, many. positives are expected to be priced in, laying the dwork for a_poter ally volatile market closer to these key events, said Rishabh Goel, manag: ing director of Tailwind Financial Services.

In anticipation of 2024 beinga year of normalisaon in the performance gap between large caps and broader markets, we recommend skewing port follios towards large caps. We advocate considering balanced advantage and hybrid funds, offering a balance between equity and debt,” said Goel.