Indian equities have been witnessing a secular uptick even as it faces a series of global and domestic challenges
Indian equities have been growing with resilience across several cycles of crises and opportunities
India is already the fastest growing economy; on track to feature among the global top three
Even global investors are betting big on India’s growth despite volatility
These are just a few examples – many more are betting on India’s bright future.
Navigating markets: tailored views on key asset classes
| Asset Class | Our View | |
| Equity | Cautious – Be Selective | Bottom-up opportunities still exist. Follow 60:20:20 when it comes to large, mid and smallcap allocation. It’s a buy-on-dip market. |
| Debt | Positive | Follow Barbell Strategy. Overweight on duration play. Reduced fiscal deficit projections, coupled with global bond inclusion and decreased gross borrowing, will likely have a positive impact on the bond market. |
| Gold | Positive | Suggested to buy on the dip. Maintain it as a strategic allocation. |
| Real Estate | Negative | Opting for investments through REITs and realty stocks might be the favorable choice. |
| International Equities | Neutral | Maintain it as a strategic allocation; avoid going overweight. |
Valuations are rich, but India’s growth story justifies the premium
- Robust economic growth, outperforming most emerging markets.
- Political Stability
- Earning is expected to grow at 15% CAGR which justifies current valuation numbers.
- The Indian market’s forward P/E multiple has steadily increased over the last decade, reflecting robust corporate profit growth
- Favorable macroeconomic factors, including controlled inflation and stable interest rates.
- Long-term growth potential, driven by both domestic consumption and structural reforms, continues to attract global investors.
- Record-high FX reserves and strong remittances have strengthened India’s financial position, adding further support to market valuation.
Market sentiments at crossroads: risks and rewards ahead
