The Indian market may surprise, giving a 15-20 percent return in 2023 even though there will be chatter around recession and other macro factors, said Atul Suri, CEO of Marathon Trends PMS, in an interview with ET Now.
"I think there is going to be a lot of confusing global narrative. The whole thing about recession, inflation and there are going to be a lot of macros. But I think the markets are going to surprise, I think we will have a good 15 to 20 percent up-move on the index. So, I think we will have a good positive year," Suri said.
Suri said after an outperformance in 2022, the Indian market is witnessing a time-wise correction.
"What we are seeing is a time-wise correction rather than us coming off, the globe is catching up and the globe is catching up in a very big way," he said.
Suri said this year we will see a change in leadership. Sectors such as PSU banks, capital goods and electrical equipment manufacturers look attractive at this point. The metal sector is also witnessing a revival.
"I make a strong case for a very good industrial revival, industry-facing banks, capital goods and such related plays will be very-very interesting," said Suri.
He believes PSU bank and defence sectors still have a long way to go.
"When industrial cycles happen out and you go back to 2003, 2004, 2005 you will find that these rallies tend to last very long because they are based not on liquidity flows or not out of default plays but they tend to be driven by genuine growth and when that happens, I feel that the rallies tend to be more sticky, more persistent and that is where I feel we are," said Suri.
He added if inflation cools off, the returns on the debt can come back and debt funds could be interesting allocations.
Disclaimer: This article is based on an ET Now interview. Views and recommendations given in this article are those of the analyst. These do not represent the views of MintGenie.