Jefferies expects Nifty earnings to grow 20% in FY24. Which sectors to bet on?

Nifty companies’ earnings are expected to grow by 20% in FY24, with foreign-related earnings leading the way. Jefferies expects domestic earnings growth to slow down to 19%, while foreign-related earnings may rise 21% YoY. Margin expansion, particularly in autos, staples, cement, and metals, will drive earnings growth, it said. Domestic cyclicals such as financials, property, and industrials are overweight. Meanwhile, the consumer discretionary and staples sectors are projected to see a margin expansion of 2.4 / 0.7ppt. Metals earnings are likely to grow 22%, while oil and gas earnings are expected to grow by 10%.