It’s hard to believe that we’re already a month into 2021. So far, a lot has happened. The much-awaited vaccine has started making the rounds, Washington’s Capitol building was stormed, and Elon Musk officially surpassed Jeff Bezos as the world’s richest man.
Whew. It makes one wonder what the rest of this year has in store for us.Well, we might not have the answer to that, but we do have a surprise for you.
Presenting our latest smallcase (basket of stocks)
To ensure that your goals of achieving financial stability are on track, the Research Team at Axis Securities put their heads together and handpicked nine stocks that are expected to perform well in 2021.
The New Year Picks 2021 smallcase was built on four fundamental aspects.
The ultimate trio
Stocks were picked from sectors like Digital, Healthcare, and Telecom, which are expected to continue their ongoing growth this year.
2021: a fresh start
2021 is believed to be the year of economic revival. Small and mid-cap stocks are likely to be at the forefront of this race and could experience market-beating earnings growth in the next few quarters.
The power of self-sufficiency
The BFSI sector, along with the Atmanirbhar theme, is expected to see immense traction. How? The Banking sector’s increased liquidity means that it’s now focused on driving growth. On the other hand, the Union Budget 2021 is expected to play a major role in the success of various Atmanirbhar (self-sufficiency) schemes. This in turn helps the manufacturing industry to thrive, which is a win-win.
What goes around, comes around
Here’s a very important term in the finance industry - sector rotation. Simply put, it’s the movement of money invested in stocks from one industry to another, as investors anticipate the next stage of the economic cycle. With underperforming sectors like FMCG expected to gain traction, sector rotation is likely to play out. In addition to this, the Infrastructure sector is expected to benefit from the Union Budget 2021.
So what are you waiting for? We might already be well into 2021, but there’s no better time to make the rest of the year a good one.