Vijay Kedia sees Sensex at 70,000 by Dec; but suggests avoiding these 2 sectors

Renowned equity investor Vijay Kedia, who holds over 1 per cent stake in more than 15 listed firms, thinks that the benchmark equity index BSE Sensex could touch the 70,000-mark by the end of the current calendar year. The 30-share index closed at 65,953 on August 7, up 8 per cent on a year-to-date basis. Meanwhile, foreign institutional investors (FII) have poured Rs 1.21 lakh crore in the domestic equity market so far since January 1. On the other hand, domestic institutional investors (DII) have bought shares worth Rs 87,491 crore during the same period.

Considering the current market scenario, Kedia says investors can zero in on sectors like infrastructure and public sectors banks. “I am bullish on infrastructure sector due to robust spending by 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 market maven told Business Today.

He also likes telecom equipment manufacturing companies. The Mumbai-based investor added that the government’s push to connect every nook and corner of India coupled with switching of 4G to 5G will bring huge investment in the sector.

On a year-to-date basis, the BSE Capital Goods index has gained the most 30 per cent till August 7. BSE Realty, Healthcare, Auto and FMCG indices have gained 26 per cent, 23 per cent, 22 per cent and 17 per cent, respectively, YTD. Telecom, IT, Consumer Durables, Metals and Bankex have also advanced between 4 per cent and 9 per cent so far in 2023. On the other hand, the BSE Power and BSE Oil & Gas indices have declined 3 per cent and 7 per cent, respectively, during the same period.

Asked which sectors he is bearish on, Kedia says investors could avoid the information technology (IT) sector due to the ongoing slowdown in the US coupled with the emergence of artificial intelligence (AI). He further advised investors to avoid metal sector due to its dependency on global market. His investment in the equity market stood over Rs 1,200 crore as of August 7, according to Trendlyne.

Data available with Ace Equity showed that Kedia held over 10 per cent stake in Innovators Facade Systems as of June 30. It was followed by Repro India (6.84 per cent), Tejas Network (2.01 per cent), Vaibhav Global (1.95 per cent) and Elecon Engineering Company (1.78 per cent).

He also held over 1 per cent stake in firms like Patel Engineering, Sudarshan Chemical Industries, Neuland Laboratories, Panasonic Energy India Company, Atul Auto, Talbros Automotive Components, Heritage Foods, Precision Camshafts, Siyaram Silk Mills and Mahindra Holidays & Resorts India for the quarter ended June 30.

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