Investors should focus on infrastructure and tourism sectors

The stock market has recently stabilized after a period of uncertainty. Investors are being encouraged to focus on certain sectors to find opportunities. Key areas include infrastructure, engineering, hospitals, and tourism. Some stocks in consumer sectors may offer returns of 15-20% over the next six to twelve months, while gold financing companies also look promising due to high gold prices. Analyst Amnish Aggarwal from Prabhudas Lilladher believes that the worst of the market panic has passed. He noted that the previous quarter saw significant fear regarding the economy. However, markets are currently stable, and he does not foresee another wave of panic in the near future. Aggarwal suggests that investors should be selective when choosing stocks this year. Many stocks have inflated valuations. He emphasized that it is a "stock pickers market," where smart choices in specific sectors can lead to better performance. He identified two main safe-haven sectors. The infrastructure and engineering sectors are performing well, with ongoing orders and a recovery from recent declines. The healthcare sector, especially hospitals and pharmaceuticals, is also in a better position. Tourism is showing promise as demand is expected to revive in the coming months. Investors looking for growth in consumption sectors should watch for a recovery in demand, particularly in durable goods and retail. Aggarwal believes stocks in these areas could provide solid returns. He also mentioned the hospitality and travel sectors, indicating that companies like MakeMyTrip and Ixigo could also be worthwhile investments, especially as discretionary spending increases. On the topic of gold financiers, Aggarwal stated that companies like Muthoot and Manappuram Finance are likely to perform well due to the high gold prices and increased interest from investors. Overall, he sees steady returns from these stocks as market conditions remain favorable.