3 days ago
Matt Orton, Chief Market Strategist at Raymond James Investment, highlighted specific Indian stocks to focus on in 2025, starting with Paytm (One97 Communications).
He believes Paytm's improved cash position after the PayPay stake sale positions it well for future growth.
“Looking at where those companies are going to spend money going forward will be important,” he said, adding that a favourable regulatory environment could further boost its earnings.
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In his model portfolio for India, Orton recommended a mix of financials, IT, and infrastructure stocks.
“I really like ICICI Bank to handle your financials and traditional banks. HDFC Asset Management is another name worth keeping on your radar,” he said.
For autos, he backed Mahindra & Mahindra, citing strong vehicle launches, growth in its farm equipment business, and diversified revenue streams.
In IT, he highlighted Infosys and Tata Consultancy Services, while Adani Ports featured as his pick for infrastructure, despite recent sell-offs.
Orton is cautious on China, describing it as a “wild card.”
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He highlighted domestic challenges, including the government’s reluctance to implement a large fiscal stimulus.
“China is a wild card, not from a geopolitical perspective but from a global inflationary perspective,” he explained.
Orton noted that China’s current export-driven deflation benefits global markets, including India, but warned that a strong recovery could pressure central banks to maintain tighter monetary policies.
Orton is positive on the US, maintaining an overweight position in his model portfolio. “I think US exceptionalism is going to continue,” he said, recommending ETFs like SPY or RSP (an equal-weighted S&P 500 ETF) for broad exposure.
Orton expects continued earnings growth in the US and advises using market dips as buying opportunities.
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He stressed the importance of selectivity in 2025. “It’s not enough anymore to paint a broad brushstroke for an industry. You need to know what you own,” he said pointing to themes like supply chain diversification, growth in Indian manufacturing, and the integration of artificial intelligence as key drivers for investment decisions in the coming year.
Watch the accompanying video for the full interview.
