Book profits wherever you can as it could be a range-bound, volatile market in near term: Venugopal Garre, Bernstein

economictimes.indiatimes.com:

Venugopal Garre, MD, Bernstein, says, “the return expectations have to be a bit more modest this year from equities and unless we see any further sudden surprises coming in later in the year. That is how we're starting the year with an 8% Nifty return expectation for this year. We are essentially saying that book profits right now wherever you can because it could be a range-bound in a volatile market especially in the sort of a near term. Not really changing a three-year or a long-term outlook where we are still extremely bullish on India from a long-term perspective.”

We have had a good 2023. How much of the 2023 good market, good momentum will spill over to 2024 as well? Are we in for another year of positive returns?
Venugopal Garre: Yes, last year was exceptional but I think at the beginning of last year, there was a lot of uncertainty. I do not think this call for last year was something which was conceived at the beginning of last year. In fact, we ourselves upgraded India only at the fag end of March and early April to a buy. Now the reality is that given the fact that we are sitting with a lot of gains last year and more importantly, as I see a lot of the base support especially for the economy to a large extent is behind.

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Earnings revisions are pretty good in the last six months of the calendar year and has also led to a situation where EPS revision momentum is more or less moderate now. We are more or less looking at a peaking of EPS momentum even though EPS