Nishant Srivastava, CEO, Mass Affluent Business, Torus Wealth, believes that investors should hire financial consultants while striving to achieve their long-term financial goals.
In an email interaction with MintGenie, Srivastava advises young investors to continue investing for real wealth creation. He also shares his optimism about the future growth of benchmark indices like Nifty50 and BSE Sensex and elaborates on why: In terms of sectoral growth, he is optimistic about healthcare, technology, automobile, renewable energy, defence and infrastructure.
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He said India’s IT sector is expected to grow 15-20 percent in 2025. Moreover, he expects deposit rates to fall following an expected repo rate cut by the Reserve Bank of India (RBI) by the end of the year.
Edited excerpt:
What’s one important piece of financial advice you’d like to impart to young investors?
My advice is “Be in the game for the long term and don’t try to rush into making money”. The youth today are totally obsessed with instant gratification and they want that in the financial markets too. The markets are long term return multiples and if you start early and are consistent you will reap the benefits.
For individual investors, is it better to build long-term wealth by hiring a financial consultant or by following a DIY approach of curating your own portfolio?
Having a financial consultant to help you on your journey is now a necessity. As the industry grows and the number of products increases, misinformation and misrepresentations of return and risk data are bound to arise. Only a careful, consistent, dedicated and knowledgeable financial consultant can guide you on this journey.
“There’s a saying that when climbing a mountain, it’s better to trust your guide than to look at a map.”
With benchmark indices hitting new all-time highs every other day, what are your expectations for financial markets?
Experts attribute the recent stock market surge to a confluence of factors. Speculation regarding a possible interest rate cut by the US Federal Reserve and ample liquidity in the market are fueling optimism. Moreover, the positive sentiment prevailing in global markets and robust earnings performance seen in the fourth quarter of 2024 are further boosting investor confidence.
Moreover, expectations of a recovery in the Chinese economy are adding to the positive sentiment in the market. India’s strong economic outlook and a surge in retail investor participation are also contributing to the momentum.
Experts believe that the growing influence of retail investors could act as a buffer against a potential economic downturn, even if delayed or minimal interest rate adjustments by the Federal Reserve result in an outflow of foreign capital.
Considering these factors, analysts are optimistic that the unprecedented rally in the Indian equity market will continue. They expect the market to continue its upward trend, supported by resilience of retail investors and a favourable economic environment.
Which sectors are expected to perform well this year?
Sectors expected to succeed this year include healthcare, technology, automotive, renewable energy, defense, and infrastructure. The collaboration between AI and green technologies, especially renewable energy, is expected to drive significant growth in these sectors over the next few years.
Additionally, increased government spending and a continued focus on infrastructure development are likely to see sectors such as defense and infrastructure thrive.
What are your expectations regarding the growth of the Indian IT sector in FY25?
The Indian IT sector is expected to grow at 8-10% in 2024 and 15-20% in 2025. The market is projected to reach a revenue of $26.45 billion in 2024.
If the RBI cuts the repo rate in the next MPC meeting, what will be the immediate impact on interest rate sensitive sectors like auto, banking and real estate?
Historical data has shown that when the Reserve Bank of India (RBI) announces a cut in policy rates, there is a mixed response from banks and automobile companies in terms of immediate adjustment in lending rates. In contrast to an immediate cut in lending rates, banks usually begin the process by reducing fixed deposit (FD) interest rates.
This first step will lay the foundation for a gradual reduction in lending rates thereafter. This gradual adjustment strategy has two effects: first, it allows banks to manage interest rate differentials to ensure stability and profitability, and second, it stimulates loan demand within the national economic framework.
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