Real Estate
The property sector has gone through a large paradigm shift in the last few years due to a string of regulatory reforms and new policies. As per Sharad Mittal, CEO & Head, Motilal Oswal Real Estate, as companies explore the work from home strategy, developers may review the launch of new supply, especially where it is speculative and not build-to-suit.
Infrastructure
Outlook for the sector seems bright with improving execution, comfortable balance sheet, and strong order pipeline. As per Yes Securities, most contractors are sitting on an order book of 3 to 3.5 times of last 12 months’ revenues, which provides strong visibility. As labour availability (80-90 per cent currently) improves further, the execution is set to pick up.
Logistics
This sector has been directly impacted as it depends on demand for manufacturing goods and trade. As per Dun & Bradstreet report, logistics providers would be required to optimise and automate to ensure safe and efficient movement of goods in 2021 to grow. Safe vaccine distribution is likely to create renewed demand upswing in the sector, say experts.
Pharma
This sector made a solid comeback from the lows of March 2020 after being lacklustre for much of 2019, say experts. According to Bhavesh Gandhi, Lead Analyst – Institutional Equities, YES Securities, 2021 could bring the focus on vaccine manufacturing and distribution capabilities, especially if a large 30-40 per cent of the population is to be inoculated.
AMC
The second half of the year 2020 witnessed a massive outflow from equity funds on the back of investors’ profit booking. However, the asset under management of the Indian mutual fund industry crossed a landmark of Rs 20 lakh crore in November 2020. Besides, the debt segment is expected to continue to remain resilient as recovery will lead to improved cash flows.
Insurance
Today, the Indian general insurance industry is well-positioned to benefit from the increased focus on product innovation and health awareness driven by the pandemic. According to experts, the recovery in vehicle sales too shall translate into an upswing in the auto segment, aiding the overall premium growth. The insurers are also expected to benefit from lower auto and health claims.
Banking
Currently for the banking sector, low credit growth coupled with high deposits, low monetary policy rates, and continued injection of funds by RBI is expected to keep surplus liquidity in the system at the least till March 2021. However, experts warn about the rise of non-performing assets in the next two years.
Auto
The sector might have faced one of the severe demand crunches due to the lockdown, but is expected to recover over the long run. Good growth prospects in agriculture followed by the rural sector bodes well for auto, say experts. Further, strong focus on clean technologies will drive demand for electric vehicles in 2021.
Consumer Staples and Discretionary
The demand for staples would remain steady with some moderation in packaged food. According to YES Securities, better trends in discretionary FMCG categories, especially driven by continued tailwinds in rural FMCG markets and strong traction would be witnessed.