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Mumbai: Concerts are staging a triumphant comeback in India after pandemic-induced challenges brought the industry to a standstill. Artists like Diljit Dosanjh and Karan Aujla are drawing large crowds, while Dua Lipa, Maroon 5, Ed Sheeran and Coldplay are fuelling a growing appetite for international acts. The scramble for tickets to Coldplay's upcoming India tour highlights the growing appetite for such events.This resurgence for live music events is driven by Gen Z and a burgeoning middle class eager for premium experiences. Once overshadowed by cricket, musical events are gaining momentum in the live entertainment landscape.However, challenges persist, particularly due to the lack of state-of-the-art infrastructure at large-scale venues, although social media's influence continues to transform the industry. Platforms like Instagram and YouTube are enabling artists to build a big following and connect with fans. Corporates are also tapping into the industry's potential. Zomato acquired Paytm Insider for ₹2,048 crore to expand its footprint in live entertainment. Swiggy is similarly exploring opportunities, intensifying competition with ticketing giants like BookMyShow. 116843532 "Music concerts post-Covid have been a rage, and this trend started especially after the Eras tour by Taylor Swift, which is believed to have grossed $2 billion in revenues," said NV Capital managing partner Nitin Menon. "The trend is picking up in India and can be seen in Diljit Dosanjh's tour... with all his shows being houseful. Coldplay in January is another example, which has become a rage, with some tickets in the grey market being sold for lakhs."The fact that Zomato bought out Paytm Insider shows the potential and even Swiggy is eager to get a slice of the pie, he said. "This trend of music festivals and concerts is a huge movement, and we would see a similar trend picking up in India," Menon said.

Mumbai: Companies with higher dividend payouts could become a popular theme on Dalal Street in 2025 as uncertainty over the stock market's direction could prompt investors to look for more predictable avenues for returns. Analysts said investors could look at companies with a strong track record of paying dividends.Vedanta, Stovec Industries, Balmer Lawrie Investments, VST Industries, Castrol India, ICICI Securities, and Swaraj Engines, among others, have consistently delivered over 100% dividends over the past five years. Dividend yields - a measure of how much a company pays out in dividends each year compared to its stock price - of these firms range between 3% and 6%. 116842939During periods of slower growth, dividend yield stocks often emerge as attractive investment options, said analysts.“High dividend yield stocks typically offer stable income through dividends, which can be particularly appealing when overall market growth is subdued,” said Sahil Shah, chief investment officer, Equirus. “These stocks, by their nature, tend to have lower earnings growth, but in a slowing earnings environment — combined with relatively high market valuations — investors may seek refuge in value stocks that provide reliable yields while maintaining a similar growth trajectory.” Vedanta, which declared a 2,950% dividend in FY24, delivered a 73% return in 2024. Stovec Industries, a small-cap company specializing in textile machinery and consumables, which doled out a 1,740% dividend in FY24, returned 23% in 2024. “This cautious sentiment is likely to persist in the near term, making it an opportune time to adopt a value-buy strategy including focusing on dividend-paying stocks,” said Vinod Nair, head of research at Geojit Financial Services. “Companies that pay high dividends typically dominate their industries, exhibit strong leadership qualities, generate healthy cash flows, and maintain robust balance sheets, thereby mitigating the impact of cyclical downturns.”

As 2025 begins, the investment landscape demands a careful balance of discipline, contrarian thinking, and focus on valuations. Reflecting on the lessons of recent years and India's robust macroeconomic position, we are poised to navigate another dynamic year in the markets. The Macro Picture: India's Resilience Amid Global ShiftsIndia continues to display impressive macroeconomic resilience. Key indicators such as the current account deficit, fiscal deficit, and inflation are under control, positioning the economy for sustainable growth. However, global trends, particularly foreign institutional investors' (FIIs) preference for US assets, have presented challenges. The so-called "US exceptionalism" has diverted FII flows away from Indian markets, particularly large-cap stocks. Yet, this trend cannot last indefinitely. India's structural growth story, underpinned by a significantly higher growth rate than the US, will eventually draw global investors back, especially into undervalued large-caps.The Valuation Debate: Caution on Mid- and Small-Cap ExuberanceSince 2021, mid-cap and small-cap stocks have significantly outperformed, driven largely by domestic investors. This trend has created pockets of overvaluation in these segments. While the momentum has been rewarding, 2025 calls for caution. Investors must refocus on earnings growth and intrinsic value rather than relying on speculative flows. India's domestic investors, emboldened by a decade without significant market corrections, often view equities as risk-free - a potentially dangerous misconception. Stocks must rise on the strength of earnings, not just liquidity.Sectoral Outlook: In line with our contrarian approach, we see opportunities in sectors that have faced headwinds and are undervalued:Rural Recovery and FMCG: We believe growing urbanisation will indirectly fuel rural consumption. In addition, improved rural incomes and policy tailwinds will likely drive growth. Infrastructure: India's infrastructure sector remains one of the most structurally robust pillars of the economy. From a valuation perspective, we see potential opportunities in select pockets within this sector. Quality Stocks: Having underperformed in recent years, high-quality stocks are now attractively valued.Cyclical Awareness: Cyclically discretionary sectors such as hotels and electronics manufacturing services (EMS) may face moderation since they are currently experiencing very high valuations in triple digits which are reminiscent of the infrastructure boom of 2007. The Case for Multi-Asset InvestingIn an environment of heightened valuations and cyclical uncertainty, multi-asset investing emerges as an ideal strategy. Hybrid funds, offering exposure to equities, debt, REITs, INVITs, and commodities like gold and silver, provide diversification and balance. Corporate bonds and fixed-income instruments also deserve attention, particularly as investors seek stable returns in a low-risk framework. Meanwhile, commodities such as gold and silver serve as effective hedges, easily accessible through multi-asset funds. Over the years, hybrid and multi-asset funds have proven their worth by bridging investor interest in traditionally overlooked asset classes, such as debt and commodities. These funds help mitigate risks while capturing opportunities across economic cycles. Navigating Cycles with Discipline Investment markets operate in cycles. Whether it is the underperformance of quality stocks in recent years or the rise and potential peak of mid- and small-caps, understanding these cycles is crucial. Investors must remain disciplined and contrarian, focusing on undervalued sectors while avoiding the pitfalls of over-exuberance. India's economic fundamentals remain strong, and the structural growth story continues to inspire confidence. However, the path forward requires patience, a long-term perspective, and adherence to valuation principles.Conclusion: The Way Forward in 20252025 offers immense potential for investors who navigate with caution and clarity. The interplay of global anddomestic factors, sectoral cycles, and valuation dynamics underscores the need for disciplined investing. As we embrace this new year, let us remain anchored in fundamentals, wary of market excesses, and committed to a diversified and balanced approach. Hence, asset allocation and business cycle investing remain structurally strong.(Author is ED & CIO, ICICI Prudential Mutual Fund)