Bajaj Finserv AMC CIO: A Bullish Outlook on Consumption from Groceries to Real Estate
Nimesh Chandan, Chief Investment Officer at Bajaj Finserv AMC, has expressed a bullish outlook on the consumption sector, spanning from groceries to real estate. Chandan believes that several positive triggers will support growth in these areas in the coming year.
I am bullish on consumption, everything from groceries to real estate, and we maintain that view, Chandan said. He noted that tax benefits, fiscal and monetary policies, Pay Commission revisions, and GST cuts are all likely to boost demand in the market.
There are many triggers, positive triggers, for cyclical uptake, also in the consumer businesses. So, I still maintain that everything from groceries to real estate is expected to do well this year. We just have to see which one will do well this quarter and which one will start doing well next quarter, he added.
Chandan observed that the consumption pattern is becoming broad-based. I think we are out of that K-shape recovery. Rural areas are doing well, and because of tax benefits, you will see lower income and middle-income groups also starting to do well, he explained.
He expects the FMCG and quick commerce sectors to lead the initial growth, followed by discretionary spending and real estate during the festive season. FMCG and quick commerce will likely see a strong performance, driven by increased consumer spending and the convenience of online platforms.
Chandan also highlighted the BFSI sector as a key opportunity. BFSI will join the party very soon. Valuations are attractive in this space… From here on, we see improvement there. So regulatory hassles are over now for insurance, from here we see a good move in the insurance sector overall, he noted. He pointed to improving credit growth, easing NIM pressures, and stable asset quality as positive indicators for the BFSI sector.
On quick commerce, Chandan said, We love them because they own the customer. They have the data about the customer buying patterns, and they can milk them very well. This data-driven approach allows quick commerce platforms to tailor their offerings and enhance customer experience, driving further growth.
Looking ahead, Chandan expects festive demand to lift various sectors, including FMCG, real estate-linked sectors, consumer discretionary, NBFCs, retail-focused banks, as well as travel and hospitality. The festive season is a crucial period for consumer spending, and businesses are likely to capitalize on this momentum to boost their revenues.
In summary, Chandan's optimistic outlook on consumption is backed by a range of positive economic factors and sector-specific trends. As these triggers take effect, the consumption sector is poised for robust growth in the coming quarters.
