ETMarkets Smart Talk: Equities poised for 16% returns in 2024, gold looks toppish: Naveen Kulkarni, Axis Securities PMS
“There may be challenges, such as missed earnings or further small cuts in the next two quarters, but even then, a 15% to 16% return looks achievable in markets, which is quite good,” says Naveen Kulkarni, CIO, Axis Securities PMS.
In an interview with ETMarkets, Kulkarni said: “As for other asset classes, I feel gold is looking toppish, so equities should have significantly higher allocations compared to other assets” Edited excerpts:
Thanks for taking the time out. Well, after a weak October, investors are going through a volatile November. What is your take on the markets?
Let us rewind a little and see how we have been faring this fiscal year. FY24 ended pretty well, with very strong earnings. Nifty earnings grew by almost 25%. However, on that base, growth has been slightly challenging. Moreover, there have been challenges with how things have been on the ground. There were elections in the first quarter, and the monsoon in the second quarter was quite strong. Various factors, including weather and political aspects, have impacted the order flow. The first half has been slower than expected, contributing to the correction we have seen in the market.
This correction has been a result of valuations being slightly higher than expected, compounded by earnings missing expectations. When this happens, the market not only corrects for the miss in earnings and adjusted expectations but also experiences some degree of de-rating. This de-rating is playing out right now.
That said, the correction we have seen so far
