What 70,000? Vijay Kedia says get ready for 80,000 on Sensex and keep adding these sectors

Mumbai-based investor Vijay Kedia, who had told Business Today way back in August that the benchmark BSE Sensex will scale the 70,000 levels by December 2023, now believes that the 30-share index will be at Mt 80K by December 2024. His views come at a time when his earlier prediction of the BSE Sensex scaling the 70,000-mark came true on Monday. However, he sees a lot of uncertainty in the equity markets going ahead due to the general elections next year and the ongoing slowdown in the developed markets including the US.

On a year-to-date basis, the Sensex has gained 17 per cent to hit an all-time high of 70,057 intraday on December 11, 2023 against 59,845.29 on December 30 last year. On asking which stocks and sectors to avoid right now? Kedia said that Indian equity markets are in a hot bull market. “This is difficult to predict which sector to avoid in a bull market. However, I think investors should stay cautious in the information technology sector,” he said adding a couple of stocks in the information technology sector have managed to deliver handsome returns to investors despite the slowdown in developed markets.

On the other hand, he thinks that infrastructure and public sector banks will continue to deliver robust returns to investors going ahead. “The upmove in the infrastructure sector will continue for the next 4-5 years. I also like the airline sector which I think is a sunrise sector at present. One can look for opportunities in the airline sector for the next 5-10 years,” the market maven said who is known for picking multi-bagger stocks in the domestic equity market.

While giving investment rationale on infrastructure and public sector banks, Kedia in his earlier interaction said that he likes the infrastructure sector due to robust spending by the government and private sector. Capacity utilisation has also reached 80 per cent. On the other hand, public sector banks enjoy cheap valuations and double-digit credit growth. The Nifty infrastructure index has gained over 32 per cent YTD. On the other hand, Nifty PSU Bank and Nifty IT indices have rallied more than 27 per cent and 17 per cent, respectively, during the same period.

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