Post the 20,000-mark milestone achieved by the Nifty50 index on Monday (September 11, 2023), market experts seemed divided on their India equity outlook. CNBC-TV18 conducted interviews with several market experts, and it's evident that some are cautious, while others remain bullish on the market. Here's a breakdown of their views:
Bullish Views:
CLSA's Optimistic Perspective: Vikash Jain of CLSA presented an exceptionally bullish view, emphasizing India's compelling earnings growth story, projecting a 17 percent CAGR earnings growth over a two-year period. He also pointed out that India's valuations are not overstretched compared to other top emerging markets, suggesting a strong entry point.
Chris Wood's Positive Stance: Chris Wood of Jefferies, a long-time India observer, expressed a positive outlook for the
Indian market. His optimism was shared during the Jefferies conference in Hong Kong, where it was noted that emerging market investors are structurally positive on India.
Cautious Views:
JPMorgan's Caution: Sanjay Mookim from JPMorgan highlighted macro risks, including higher oil prices and concerns about inflation and deficient rainfall. JPMorgan is shifting from a growth to a value strategy and advises a cautious approach.
Mirae's Cautious Call: Rahul Chadha of Mirae Asset Global Investments took a cautious stance, expressing concerns about the sharp rise in mid and small-cap stocks. He also mentioned higher global risks and expected shifts in the global narrative, possibly leading to market demands for more rate cuts.
Local Veterans' Caution:
Sunil Singhania of Abakkus Asset Management noted that valuations are still reasonable but suggested a preference for large-caps over midcaps going forward.
Vijay Kedia of Kedia Securities stressed the importance of quality stocks, regardless of market capitalisation.
Nilesh Shah's Warning: Nilesh Shah of Kotak AMC cautioned investors about the popularity of midcap mutual funds and urged them to be aware of risks, including a deficit in monsoon rainfall and inflation.
Atul Suri's Balanced View: Atul Suri of Marathon Trends-PMS provided an optimistic perspective, stating that the market is not in a bubble. However, he also highlighted the key risk of rising US bond yields, suggesting that inflation may not have peaked as previously thought.
The market experts' views range from highly bullish to cautiously optimistic, with some expressing concerns about various macroeconomic factors and the need for prudent investment strategies in the current market environment.
(Edited by : C H Unnikrishnan)
First Published: Sept 12, 2023 2:56 PM IST
