WHAT TO LOOK OUT FOR IN FY18

Here is what experts had to say about what the new financial year will hold for different sectors—mutual funds, insurance, banking and real estate.

S NAREN Executive director & CEO, ICICI Prudential Asset Management Co Ltd

Volatility is most likely to prevail through this year owing to several events lined up in developed countries. However, we are positive on equities with a two-three year view.

On the domestic front, we are of the view that a deleveraging cycle is likely to play out, leading to a rise in capacity utilization and corporate earnings. Valuations on parameters such as market capitalization-to-gross domestic product (GDP) are reasonable and profit as a percent of GDP has reduced substantially. Going forward, we expect these matrices to improve, which in turn could translate to better equity returns over the next two years. Infrastructure theme looks promising from a three-year perspective, given the renewed thrust of the government in this area.

PANKAJ RAZDAN MD & CEO, Birla Sun Life Insurance Co Ltd

In the last three years, life insurance industry has emerged as one of the most important platforms for people to access capital markets, investments, savings as well as protection. We believe this trend will continue as India continues to grow with a robust GDP. With the absence of social security and increasing per capita income, people will require more protection for their dreams. Towards this end, we believe there will be a clear shift from selling to advice on products. Segmentation will move towards understanding the customer mindset and products will be created to suit their needs. Secondly, there will be emergence of different kinds of marketing strategies fueled by digitization to reach a customer anytime, anywhere.

NITIN CHUGH Country head, digital banking, HDFC Bank Ltd

After branches and ATMs, the new touch points for customers are net banking, mobile banking apps and other machine-learning and artificial intelligence-based platforms. Social media and bank websites are embedded with chat bots to enhance the level of engagement with customers. Technology will play an even greater role to give customers the choice to conduct banking transactions at their time and convenience. Also, the government’s thrust on digital payment platforms, by introducing UPI (Unified Payment Interface), BHIM

(Bharat Interface for Money) app and Bharat QR (quick response) code, will give a fillip to cashless transactions in India. These platforms are being integrated by banks and will give customers cashless payment options.

SHISHIR BAIJAL Chairman & MD, Knight Frank India

In 2017, the government of India gave unprecedented focus on affordable housing in its Union Budget.

The infrastructure status given to this segment was a landmark step and increasing the size of units under this scheme would help homebuyers to find bigger homes in sync with lifestyles in metro cities at affordable prices.

We believe leading developers are likely to show serious interest in this segment. Presently, the residential sector is a buyer’s market. The correction in price, coupled with reasonable reduction in home loan interest rates, has made the time conducive for meaty bargains to home buyers.