No stress in BFSI, NBFC shares to catch up with rest of market: Mahesh Patil

Patil expects a decent earnings growth in FY24.

The headline returns of the Nifty may be muted but the GDP numbers have been reasonably strong, indicating a positive economic outlook, Aditya Birla Sun Life AMC Chief Investment Officer Mahesh Patil has told CNBC-TV18.

Patil highlighted that there is no major stress observed in the BFSI (Banking, Financial Services, and Insurance), automobiles, realty, and capital goods sectors.

He expects decent earnings growth in FY24, particularly in the automobile sector, with commercial vehicles (CVs) and premium vehicles performing well. The rural demand, which was impacted last year, is still of recovering. However, if rural demand picks up, there could be a revival in the demand for two-wheelers, he said.

Patil also mentioned the significant upmove in global IT names, especially within the past month. He believes that the market has bottomed out and anticipates higher growth in the IT sector this year compared to pre-pandemic levels. However, there are constraints on mutual fund investments in overseas markets, he said.

Regarding the non-banking financial companies (NBFCs), Patil acknowledged that they underperformed during the interest rate hike cycle last year but expects them to catch up this year. Personal lending and mortgages were picking up, indicating positive growth in those sectors, Patil said.