November Wrap-up - Sage Views - The Year Ahead

“I've found that when the market's going down and you buy funds wisely, at some point in the future you will be happy.” - Peter Lynch

Dear Investor,

Markets stayed flat in November however there was a lot of movement in the broader indices however there was sector rotation that was seen in this month. Power (-4% m-o-m), Metals (-2%) and Oil & Gas (- 2%) showed the strongest fall on a m-o-m basis. Strongest rise visible in IT (6% m-o-m), followed by consumer durables (3%) and capital goods (2%).

On a YTD basis, Nifty and Sensex increased by 11% and 10.5%, respectively. All sectors have yielded positive returns on a YTD basis. Healthcare (38% YTD) has been the biggest gainer, followed by telecom (29% YTD) and Power (29%).

Market Update: NIFTY reported ~4% growth in sales. EBITDA and PAT growth were lower at 5% y-o-y and 4% y-o-y respectively, the earnings outcome was muted. FII’s pulling out of India is impacting large cap in the same breadth even as the valuation arguments are relatively in favour of large cap over mid and small cap. There has been some moderation in mid cap valuations over the large cap, but its still elevated. High Frequency Indicators like GDP growth has come out much lower than expected with inflation remaining elevated.

Subscribe now

Market Outlook for 2025: It looks like a year where we should see normalization of everything i.e. Valuations (P/E, P/B, etc.), Earnings which in turn will also lead to lower (positive) returns in equity than the previous 2 years. This will be a year for accumulation for equity investors and we have seen a lot of new companies entering the market through IPO’s for eg. Zomato, Swiggy and many more which has expanded the market breadth, and so portfolios will have to be made with a fresh perspective. We should continue seeing strong activity in the primary market (IPO) this year as well. Some quality stocks will likely remain a bit expensive and we might well see a comeback of the giants (large cap) this year.

What should investors do?

A lot of you might be checking your favorite shopping app this Christmas/New Year to buy your favorite brand at a discount. These days Sale culture runs 365 days a year however on festivals its a bit more than usual. In markets, there are fewer days when you get good stocks at a discount. We believe 2025 will bring you opportunities where you will be able to buy markets at a fair price if not discount and sometimes even a discount but the only difference is when your favorite brand is at a discount you’re excited to buy it however with markets you are fearful. We would say to keep faith in markets to give you that value in the long term.

Thanks for reading Market Pulse by The Sage! If you like this post, feel free to share it.

Share

Start Planning your taxes: Its that time of the year when you will need to start planning for your taxes. Set up a call with us to understand which regime suits best for you and how you should plan your tax planning for this financial year as we move on to the last quarter. Book a slot here: https://koalendar.com/e/meeting-with-sagecapital

Start your Tax Planning with our app

Our all-in-one link to access all our resources is here: https://linktr.ee/sage.capital

Apart from all this feel free to Call/WhatsApp us at +91-8369664202 or reach our team at invest@sagecapital.in

As we end this post, we also end another year on a high note. We will be back with new insights next year, here’s wishing all of you a Merry Christmas and a Happy New Year in Advance! :)

Happy Investing!

Warm Regards,

Nikhil Gupta

www.sagecapital.in