ETMarkets Fund Manager Talk: We see possibilities of increased FII inflows in 2024: Shreyash Devalkar, Axis MF

economictimes.indiatimes.com:

While the early part of 2024 for Indian markets is set to be influenced by the Union Budget and the general elections, stronger economic growth and improving earnings outlook should bode well for equities over the next one year, says Shreyash Devalkar, Head — Equity, Axis Mutual Fund.
“There is a possibility of increased FII flows in 2024, given expectations around political stability and peaking/falling interest rates, especially towards the second half of the year,” Devalkar said in an interview with ETMarkets. Edited excerpts:


With 2023 drawing to a close, how does 2024 look up for the Indian equity market? What are the key factors that will drive inflows? Heading into 2024, we must remember that 2023 was good for the market and there could be bouts of consolidation.

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However, we consider this healthy and a good opportunity for investors to remain invested or add into their investments. 2024 will be influenced in the first half by the Union Budget and the general elections. The ruling party’s win in 3 of the 5 states in the assembly polls already sets the momentum for policy continuity. Post that, I do believe that India’s growth trajectory will remain on a firm footing, led by a pick-up in capex and industrial activity.
Apart from elections, stronger economic growth and improving earnings outlook should bode well for equities over the next one year. As long as India has the right structural and fundamental themes, I believe 2024 will be good for the investors.