Mihir Vora, Chief Investment Officer at Trust Mutual Fund, highlighted the rising potential of Indian equity markets, underpinned by robust domestic consumption, manufacturing, and infrastructure development. Vora predicts sustained growth in sectors like construction, capital goods, and real estate, envisioning returns ranging between 10 to 12 per cent in the broader equity markets over the coming years.

Vora particularly reinforces the promising outlook for sectors such as construction and real estate, buoyed by a resurgence in private sector capital expenditure and government initiatives favouring indigenous procurement. He points to the recent 8.4 per cent economic growth in the October-December quarter as a testament to the momentum in manufacturing and construction activities.

With an eye on fixed income assets, Vora advocates for longer duration Indian government bonds in the portfolio, anticipating a decline in benchmark bond yields to 6.50 per cent by the end of 2024. He suggests a balanced exposure to both bonds and equities, leaning towards equities in the latter half of the financial year, especially if rural consumption trends upward.

Vora expects government bonds to yield returns around 8 per cent for the year, with stabilisation anticipated between 6.5 per cent to 7.0 per cent in the foreseeable future. As the Indian economy thrives on domestic consumption and infrastructure development, Trust Mutual Fund remains optimistic about the country's growth trajectory and its implications for investors.

(With Reuters inputs)