Sentiment, liquidity fundamentals together will ensure India outperform at least some global peers if not all.
The Indian economy is relatively better placed than peers and advanced economies. In the near term, returns maybe moderate in India due to relatively higher valuations, global growth slowdown (or even recession) and some domestic slowdown as well. The Indian economy is relatively better placed than peers and advanced economies. In the near term, returns maybe moderate in India due to relatively higher valuations, global growth slowdown (or even recession) and some domestic slowdown as well.
Bank Nifty also closed with a drop of over a percent led by selling in PSU Banking names. The index witnessed a false breakout on the upside early in the day but bears hammered it back lower.
As deposit rates fully reflect the rise in yields, UBS Securities India expects households to further move away from risky equities into fixed deposits.
Madanagopal Ramu of Sundaram Alternate Assets expects indices to be under pressure in H1 2023, but expects a recovery in H2.
Given the fact that we are in the midst of a Quantitative Tightening cycle, it’s difficult to imagine expansion in valuations. Even at long term average valuations, markets may show decent upside potential in 2023, while superior stock selection can lead to even better returns.
Arvind Kothari says manufacturing, infra, green energy, and consumption are some of the top sectors around which he’s built his portfolio.
