Tech, healthcare, auto, renewable, infra to do well this year, says Nishant Srivastava of Torus Wealth

While investors try to meet their long-term financial goals, they should engage a financial consultant, believes Nishant Srivastava, CEO, Mass Affluent Business, Torus Wealth.

In an email interaction with MintGenie, Srivastava shares an advice for young investors: stay consistent in investing for substantive wealth creation. He also shares his optimism for the future growth of benchmark indices such as Nifty50 and BSE Sensex and gives detailed reasons for the same. So far as sectoral growth is concerned, he is optimistic about healthcare, technology, auto, renewable, defence and infrastructure.

He says that the Indian IT sector will see a 15-20 percent growth in 2025. Additionally, he looks forward  to lowering of deposit rates in the aftermath of expected repo rate cut by RBI by the end of the year.

Edited Excerpts:

What is the key financial advice you would like to give to young investors?

My advice would be to ‘stay long in the game, don't be in a hurry to make quick money’. The youth today is completely grappled by instant gratification and that is what they are looking for in the financial markets as well. Markets are a long-term return multiplier and you can reap benefits if you start early and stay consistent.

Can you tell me what is better for retail investors in order to do long-term wealth creation: to engage a financial consultant or  to follow a DIY approach to curate a portfolio on their own?

It's the need of the hour to have a financial consultant assisting you in your journey. With the growing industry and the number of products misinformation and misrepresentation of return and risk data is bound to happen. Only a prudent, consistent, dedicated and learned financial consultant can guide you through this journey. 

“There's a saying - it's better to trust a guide when climbing a mountain rather than looking at the maps.”

What are your expectations from financial markets with benchmark indices reaching their all-time highs every other day?

The recent surge in the stock market is being attributed to a confluence of factors by experts. Speculation regarding a potential rate cut by the US Federal Reserve, coupled with the abundance of liquidity in the market, has fuelled optimism. Additionally, positive sentiments prevailing in global markets, along with the robust performance witnessed in the fourth quarter of 2024, have further boosted investor confidence.

Furthermore, there is anticipation of a turnaround in the Chinese economy, which has added to the positive sentiment in the market. India's strong economic prospects and a surge in retail investor participation are also contributing to the momentum. 

Experts believe that the increasing influence of retail investors could act as a buffer against potential downturns, even if there are foreign capital outflows due to delayed or minimal rate adjustments by the Federal Reserve.

Given these factors, analysts are optimistic about the continuation of the Indian stock market's unprecedented rally. They anticipate that the market's upward trajectory could persist, supported by the resilience shown by retail investors and the favourable economic environment.

Which are the sectors likely to do well in this financial year? 

The sectors poised for success this year include healthcare, technology, autos, renewable energy, defence, and infrastructure. The emphasis on AI and environmentally friendly technology, particularly in conjunction with renewable energy, is expected to drive significant growth in these sectors in the coming years. 

Additionally, sectors like defence and infrastructure are likely to thrive due to increased government spending and the ongoing focus on infrastructure development.

What expectations do you have from the growth of the Indian IT sector in fiscal 2025?

The Indian IT sector is expected to see 8–10% growth in 2024, and 15–20% growth in 2025. The market is projected to reach $26.45 billion in revenue in 2024. 

If RBI cuts down the repo rate in the next MPC meeting, what will be its immediate impact on rate-sensitive sectors  such as auto, banking and real estate?

Historical data shows that when the Reserve Bank of India (RBI) announces a cut in the policy rate, there is a nuanced response from banks and auto companies regarding the immediate adjustment of loan interest rates. Contrary to an immediate reduction in lending rates, banks typically initiate the process by lowering fixed deposit (FD) interest rates. 

This initial step sets the stage for a subsequent gradual reduction in loan interest rates. This sequential adjustment strategy has a twofold effect: firstly, it allows banks to manage their interest rate spread, ensuring stability and profitability; secondly, it stimulates demand for loans within the country's economic framework.