India’s record equity valuations a vote of confidence by FPIs: Buch

While some see the indices rising 25% in the next two years, others say the Nifty could touch 20,000 by the end of FY24.

After being downgraded to neutral earlier in the year, India has rebounded and is now one of the top-performing emerging markets thanks to its encouraging GDP data, which has cemented its position as one of the fastest-growing economies globally. Strong earnings growth prospects, combined with swelling bids from both domestic and foreign investors, make Indian equities an attractive investment opportunity, despite rich relative valuations, according to Ridham Desai, managing director, Morgan Stanley India. Foreign portfolio investors have poured in more than $6.8bn into Indian markets since March.

“If you look at the kind of companies where the stocks are going up even more are the ones that are not even covered by many research houses. So the stocks that are the smaller ones, not in any coverage by the sell side are still seeing a lot of rally. So clearly, there is some irrationality.”

While we celebrate highs of the market, the problem is that markets do not follow earnings growth in a linear fashion.

The unprecedented win streak has pushed Indias stock market valuation above $4 trillion for the first time, closing in on Hong Kong. Survey respondents pointed to inflows from overseas investors, who have bought $20 billion worth of Indian stocks on a net basis so far this year, reversing a record withdrawal in 2022.

New Delhi [India], December 25 (ANI): Cumulatively, the past 12 months have been stellar for investors who parked their money in Indian stocks. Though there has been some turbulence, first during the Adani-Hindenburg episode and lately during the initial days of the Israel-Hamas war, the calendar year 2023 gave handsome monetary dividends to stock market […]

“While the Nifty50 has reached a significant milestone at 20,200, it's not necessarily indicative of a definitive ceiling. Several global factors, such as the stronger-than-expected global growth and the recent decline in global average inflation, suggest that equity valuations are less likely to face immediate pressures.”

Societe Generale on Wednesday downgraded Indian equities to "neutral" from "overweight" ahead of elections next year on expectations of "moderating" economic growth and improving risks for broader emerging market stocks.

Rahul Bhuskute, CIO of Bharti AXA Life Insurance anticipates positive mid-single-digit to low double-digit returns in Indian markets. He discusses the impact of General Elections 2024 and highlights potential opportunities.

India Business News: India has replaced Hong Kong as the fourth-largest stock market in the world. Find out more about the current bull rally and the factors contributing to India's market capitalisation of $4.3 trillion.