With looming market uncertainties due to global tensions, Amit Jain strategizes on key sectors for resilience and growth
Amit Jain, co-founder of Ashika Global Family Office Services, is closely monitoring potential market shifts influenced by global geopolitical tensions, particularly between Israel and Iran. In light of these developments, Jain’s investment strategy includes a focus on the banking, FMCG, and speciality chemicals sectors, which he believes will offer stability and growth if markets face a significant correction.
With over 18 years of experience in the Indian banking and financial services industry, Jain has developed a nuanced understanding of market dynamics, enabling him to anticipate changes and adapt strategies accordingly. His insights come at a time when global markets are on edge, awaiting potential retaliatory actions by Israel following a recent missile attack by Iran.
Embed from Getty Images“If a global correction ensues, I plan to allocate investments strategically, with 20 per cent in Hong Kong tech sector ETFs and the remainder in Indian sectors with robust growth potential,” Jain explained. His investment distribution reflects a preference for sectors that historically show resilience during economic downturns.
Within the banking sector, Jain proposes a split investment approach, allocating 60 per cent to private banks and 40 per cent to public sector units. His focus in the FMCG sector includes major players like Hindustan Unilever and Dabur, aiming for medium to long-term gains.
The speciality chemicals sector also remains a critical part of Jain’s strategy, driven by its essential role in various industries and potential for significant returns. “These sectors not only offer safety but also growth opportunities in turbulent times,” Jain added, highlighting their capacity to weather market volatility.
Jain’s broader market perspective is cautiously optimistic, with a keen eye on the earnings growth in the IT, speciality chemical, FMCG, and banking sectors during the current earnings season. He believes that midcap companies in IT and banking hold potential as the next multi-baggers, offering significant upside in the medium to long term.
Moreover, Jain views the FMCG sector as potentially the dark horse in the coming year, boosted by favourable monsoon forecasts and increased rural spending due to election-year activities. This sector’s resilience and connection to daily consumer needs could make it a safer bet against the backdrop of economic uncertainty.
As global markets brace for possible fluctuations, Jain’s strategies reflect a blend of caution and strategic opportunism, aiming to leverage sector-specific strengths to safeguard investments and capitalize on potential growth trajectories.
