ICICI Bank, HCL Tech, Inox Wind, among top picks for 2025: Mirae Asset Capital Markets'

As we step into 2025, investors are focusing on sectors that are likely to shine after a volatile 2024. According to Manish Jain, Director of the Institutional Business (Equity & FI) Division at Mirae Asset Capital Markets, sectors such as IT, Auto, BFSI, and Solar offer solid investment opportunities.

Despite concerns over FPI outflows and inflation risks, Jain suggests that domestic flows and resilient consumption will continue to support the market. He advises investors to remain patient and keep some cash reserves to take advantage of potential dips for long-term gains.

Sectoral Breakdown:

IT Sector

IT is expected to be a standout sector in 2025. Factors like favorable policies, tax reforms, and new trade tariffs, along with the strength of the dollar and a weakening rupee, are anticipated to benefit the sector. Moreover, the push for AI and digitization, alongside a recovery in BFSI and US markets, signals positive growth.

Auto Sector

The auto sector, especially two-wheelers and tractors, is poised for growth, driven by a recovery in rural markets, marriage-related expenditures, and strong crop yields. Key industries such as construction, mining, and infrastructure projects will also drive demand for commercial vehicles.

BFSI (Banking, Financial Services, and Insurance)

In the BFSI sector, non-lending businesses such as market infrastructure, wealth management, broking, and insurance are expected to outperform. A continued rise in health insurance demand and strong investor interest in Indian equities will contribute to this growth.

Defence Sector

The defence sector remains a long-term play. Despite recent price hikes in some stocks, supportive policies, export opportunities, and increasing local production will likely give a boost to the sector. Additionally, expected enhancements in military procurement under the leadership of the US will further fuel growth.

Power & Solar Sector

The solar and renewable energy sectors are expected to benefit from the government's push for 500GW renewable capacity expansion, green energy projects, and solar parks. With strong demand projections and favorable policies, the sector is set for a promising future.

Healthcare Sector

Healthcare, particularly hospitals and diagnostics, is set to see a surge in capital expenditure. The passing of the Biosecure Act presents significant growth opportunities for Indian CDMO players, and key pharma companies are likely to benefit from easing pricing pressures and new product launches.

Stock Picks for 2025:

Auto: Endurance Technologies Ltd, UNO Minda Ltd

BFSI: Bank of Baroda, ICICI Bank

IT: HCL Technologies Ltd

Midcap: Inox Wind Energy Ltd

Pharma: Rainbow Children

Disclaimer: Investors are advised to consult with certified experts before making any investment decisions.