InvestorQ : Do you think that financial services will be a big story for investment in 2020? What about outsourcing and Atma Nirbhar Bharat programs?
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Do you think that financial services will be a big story for investment in 2020? What about outsourcing and Atma Nirbhar Bharat programs?

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Juvina Maggie answered.
3 weeks ago
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Remember that any recovery in GDP will be positive for banks. But, there is a larger BFSI story building up. Insurance companies will gain from a surge in demand for life covers to accident covers, to health covers and critical illness covers. The under-penetrated insurance sector could get its first genuine boost as a result of COVID.

There is a quiet equity shift that happened in 2020 and that is likely to get reinforced in the current year 2021. COVID will lead to a greater focus on long term saving products like equities and equity funds. Apart from listed AMCs, listed stock exchanges and listed demat providers could also see a surge in valuations in the year 2021.

The one story we cannot ignore is the self sufficiency story of Atma Nirbhar Bharat. Global players like Suzuki and Hyundai now want to diversify China bets. Even Apple has already started the process. Many outsourcing stocks like Dixon have done exceptionally well but this could just be the beginning of the trend. Watch out, the big trend could be defence.

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