Opportunities in Indian market amid global corrections: Mihir Vora’s investment recommendations

Mihir Vora, Chief Investment Officer, Trust Mutual Fund

Market expert Mihir Vora is optimistic about investment opportunities in the Indian stock market, despite global market corrections and concerns about a possible US recession. His key recommendations include focusing on sectors such as power, renewables, real estate and more, given growth potential and resilience amid economic uncertainties.

In an interview with CNBC-TV18 on October 26, Vora, chief investment officer, Trust Mutual Fund, expressed his bullish outlook on several sectors in the Indian market. Vora believes that these sectors offer compelling prospects, even as global factors contribute to market corrections. His views came before the release of encouraging GDP data, against the backdrop of an anticipated US recession and lingering uncertainties.

Market resilience, global factors and long-term strategy

While global factors such as the Israel-Palestine conflict contribute to market corrections, Vora noted the Indian market's relative strength compared to others. He expects some turbulence ahead, particularly due to supply chain disruptions and inflation.

However, he believes that India remains well positioned for long-term growth. Vora's advice to investors is to not discontinue systematic investment plans (SIPs) or regular investment plans, despite market volatility.

Favourable sectors, capex trends and manufacturing resilience

Vora is particularly bullish on the capital expenditure (capex) cycle in the domestic economy, especially in government-linked growth areas with upcoming elections. He attributes the increase in capex to manufacturing exports and anticipates that the private sector is poised for a fresh start, emphasising the resilience of the manufacturing theme across sectors.

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He foresees government actions benefiting sectors such as fast-moving consumer goods (FMCG), and expects positive developments in the ceramic sector. However, he expects challenges for the IT sector due to its connections to the US market, and he suggests keeping an eye on corrections in the small and medium enterprises (SME) space.

Optimistic outlook: Correction and valuations

In summary, Vora anticipates that the market correction will not exceed 5-10 percent, and he believes that valuations have returned to long-term average levels. His outlook includes an expected earnings growth of about 15 percent, slightly above the long-term average, signalling optimism in the Indian stock market despite global challenges.

The benchmark NSE Nifty index fell around 5 percent in the last six trading sessions. It was trading up over a percent higher on October 27 at 19,052 points as of 2.13 pm.

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