In this episode of What the World Wants, Caesar Maasry of Goldman Sachs talked about its report where they say that the pattern of the last five years suggests that the outperformance of the last five years will become the underperformance of the next five years.
On the Indian market, Maasry said, “Indian equity markets have come up with a very strong run last year, certainly compared to emerging market peers of something like 24 percent but as you noted, the valuations or PE, or PE of the Nifty for example, is something like 23 times forward earnings, that is the highest equity valuation across all of emerging markets. So we see the opportunity in the near term, next couple of quarters perhaps, for some rotation into the cheaper or the less expensive EMs that have some room to recover.”
He added, “When we think about the two- or three-year, sort of longer-term story, the fundamentals of India look quite strong, and we would just look to re-engage at a better valuation entry point.”
For full interview, watch accompanying video...
First Published: Jan 20, 2022 6:59 PM IST